With this announcement, SBI Remit Co., Ltd., a subsidiary of the SBI Group and a leader in the international money transfer service market, and Ripple and SBI Ripple Asia have significantly expanded their relationship.
Because of this partnership, XRP will be accepted in financial institutions in the Philippines, Vietnam, and Indonesia as a bridge currency for international payments.
According to the official news release, “SBI Remit has been utilizing Ripple Payments supplied by Ripple for its international transfer services since 2017. “We were the first in Japan to offer an international payment service that uses the crypto asset XRP as a bridge currency between two legal currencies when we added a solution that uses crypto assets to Ripple Payments.”
This is not SBI Remit’s first venture into remittances using XRP. It was the first Japanese business to use XRP as a bridge currency for overseas remittances when it established a service in 2021 that catered to Filipino digital wallets.
This recently disclosed plan is meant to simplify sending money abroad. According to the official news release, “in the scheme constructed this time, SBI Remit transmits a customer’s remittance request and SBI VC Trade transmits XRP in real time in response to the request.” Customers may be certain that their remittances will be sent in the legal tender of their country of residence thanks to a strategic partnership with Tranglo Pte. Ltd., a long-term RIpple partner.
In a statement, SBI stressed the speed and low cost of sending money abroad by utilizing XRP as a bridge currency. “Furthermore, it has outstanding scalability, enabling users to easily send money to Ripple’s partners around the world,” the company said. “We believe this will result in stronger rivalry in the international remittance business.”
The choice to strike at the Philippines, Vietnam, and Indonesia was well thought out. These nations are especially ripe for XRP adoption because of the high proportion of remittances sent to bank accounts. SBI Remit believes the launch of their XRP-based remittance service would hasten the widespread acceptance of cryptocurrencies throughout these countries.
The press statement also emphasizes SBI Remit’s dedication to extending the service’s reach beyond its present concentration on three Asian nations.