SBI Remit Co., Ltd., a key player in the international money transfer service sector under the SBI Group umbrella, has announced a significant expansion in its partnership with Ripple and SBI Ripple Asia. This collaboration will see the introduction of international remittance services using the cryptocurrency XRP as bridge currency to bank accounts in the Philippines, Vietnam, and Indonesia.
“SBI Remit has been using Ripple Payments provided by Ripple for its international remittance services since 2017,” the official press release stated. “By introducing a solution using crypto assets in Ripple Payments, we became the first in Japan to provide an international remittance service that utilizes the crypto asset XRP as a bridge currency between two legal currencies.”
SBI Expands Partnership With Ripple
This move is not the first foray of SBI Remit into the world of XRP-based remittances. In 2021, the company launched a service targeting digital wallets in the Philippines, making it a pioneer in leveraging XRP as a bridge currency for international remittances in Japan.
The newly unveiled scheme is designed to streamline the international remittance process. “In the scheme constructed this time, SBI Remit sends a customer’s remittance request, and SBI VC Trade sends XRP in real time in response to the request,” the official press release detailed. This dynamic approach is made possible through a strategic alliance with Tranglo Pte. Ltd., a long-term RIpple partner, ensuring that customers receive remittances in their local legal currency.
“By using XRP as a bridge currency, you can send money quickly and at low cost,” SBI emphasized in their statement. “Furthermore, it has excellent scalability, allowing users to easily send money to Ripple’s partners around the world, and we believe this will lead to stronger competitiveness in the international remittance business.”
The decision to target the Philippines, Vietnam, and Indonesia was strategic. These countries have a significant share of remittances directed to bank accounts, making them prime targets for XRP adoption. SBI Remit anticipates that the introduction of this XRP-based remittance service will further accelerate crypto adoption in these nations.
SBI Holdings chairman and CEO, Yoshitaka Kitao, shared this development, highlighting the company’s commitment to revolutionizing international remittance services. The press release also notes that while the current service focuses on three Asian countries, SBI Remit is committed to expanding its reach.
“Going forward, through partnerships with Ripple and other fintech companies, SBI Remit will strive to increase the number of countries where remittance is possible and expand services with a view to corporate transactions and inbound transactions,” the company stated.
At press time, XRP traded at $0.5007.
Featured image from TheNextWeb, chart from TradingView.com