Mitsubishi UFJ Financial Group (MUFG) and Mitsubishi Corporation have revealed their plans to use Ripple (XRP) distributed ledger technology to prove international remittance.
Mitsubishi said that the cross-border settlement reduces costs and transaction times.
In a remittance test, it was aired that UK’s Standard Chartered will also become a significant participant.
Within a few years, they aim for practical use, said Mitsubishi.
The same statement pointed out the fact that Singaporean dollars will be remitted from Thailand to Singapore and Mitsubishi Corporation subsidiary will transact funds from an account held in the local Ayutaya Bank under MUFG to an account that will be established by Mitsubishi Corporation Affiliate at Singapore’s base in Standard Chartered.
“In the current international remittance, we use a network of International Banking Communication Association (SWIFT) where financial institutions of each country participate. In many cases, it often goes through multiple banks; it takes a lot of fees and generally takes several days to remit.”
Ripple’s performance in cross-border remittance
The statement also describes that Ripple’s distributed ledger technology was used for demonstration experiment and it manages to eliminate fraud.
The protocol is cheaper and faster in comparison to other remittance protocols that are deployed by conventional banks.
Ripple announced ten customers deploying its technology in 2017
Back in 2017, Ripple revealed Mitsubishi UFJ as part of the ten customers deploying Ripple technology.
“Ripple is proud to announce the addition of 10 new customers to our growing global network. These financial institutions include MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, innovative smaller banks, and payment service providers (PSPs).”
Hirofumi Aihara, General Manager, Bank of Tokyo-Mitsubishi UFJ, who is also a member of MUFG said back then that, “We are very pleased to be working with Ripple (XRP) to provide new types of payments services to change our customers’ experience using the power of the blockchain technology. To demonstrate our commitment to the technology, we are joining the Japan Bank Consortium to collaborate with other Japanese banks move to the commercial use of Ripple’s global network.”