SBI Remit has adopted XRP as its bridge currency and this service will be expanded to The Philippines, Vietnam, and Indonesia starting this month.
SBI Remit is a subsidiary of the crypto-focused SBI branch in Japan, SBI VC Trade. They recently unveiled this strategic move aimed at revolutionizing the landscape of international money transfer services.
The news of this groundbreaking partnership was shared by Yoshitaka Kitao, the Chairman and CEO of SBI Holdings on X.
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The SBI and Ripple Partnership
Per their English report, the XRP-powered remittance service will kick off this month and their initial focus is bank accounts in The Philippines, Vietnam, and Indonesia.
SBI Remit emphasized that its expansion into these countries aligns with its well-established business strategy of using XRP as a bridge for its cross-border transactions.
According to their announcement, they have been using Ripple’s payment service since 2017, and in 2021, they became the first company in Japan to provide international remittance services using a crypto asset. Now, they’re looking to broaden their horizon and bring XRP to more countries.
SBI Remit also pointed out that these countries they’re looking to expand into receive a significant portion of remittances through bank accounts and this makes them the ideal candidates for XRP adoption.
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In addition to fueling cryptocurrency adoption in these countries, it will also save a lot of costs. By using XRP as the bridge currency, transactions can happen much faster and at significantly lower costs. The report also highlights that the system is very scalable and can let users transfer money to other Ripple partners around the world which will improve their competitiveness in international remittance.
Their new streamlined process involves them receiving the remittance requests from customers and then sending the equivalent amount in XRP, enabling real-time processing.
This system works, thanks to SBI Remit’s partnership with Tranglo Pte Ltd., one of the top companies in money transfer circles, which sends the money to the users. Having Tranglo as an overseas remittance partner will let users get remittances in their local currency.
Read Also: MoneyGram CEO Discusses Using XRP for Cross-Border Payments
What’s Next for Ripple and SBI Remit
SBI Remit has its eyes set on these three countries for now but with their goals of expansion, they can be expected to extend their reach even more very soon.
They also plan to provide a wider range of services like enhancing corporate business payments and inbound transactions through their partnership with Ripple and other payment service providers.
Meanwhile, an expert recently expressed a belief that Ripple might not succeed without XRP succeeding and it is interesting to see Ripple going into partnerships like this which help XRP grow.
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