Ripple will be connecting Brazil and Japan with its services. Cross-border payments between these two nations will now be processed in a much easier, faster and cheaper way than before. The information was released by a subsidiary of the Japanese bank MUFG Bank LTD a few days ago.
Brazilian and Japanese Banks to Leverage Ripple’s Products
Two banks from Brazil and Japan will now be using Ripple’s blockchain technology to perform cross-border payments. MUFG Bank and Banco Bradesco signed a Memorandum of Understanding (MoU) to collaborate on a new cross-border payment service.
According to the press release, MUFG Bank is the principal banking unit of Mitsubishi UFJ Financial Group, Inc. The Brazilian Bank is based in Sao Paulo and is a recognized financial institution in Latin America.
Both banks took the decision to start working in a cross-border payment service between both countries. In order to sen and receive payments, both banks will be working with Ripple. Ripple is one of the largest and most valuable companies in the cryptocurrency world.
The official document uploaded by the Japanese bank reads as follows:
“Through this MOU, MUFG Bank has decided to start the collaborative development for cross-border payments between Japan and Brazil, utilizing Ripple’s cutting-edge software vendor. The new payment system (…) will assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil.”
Ripple has developed a payment network that has more than 100 different entities from all over the world. Ripple’s products offer financial institutions and banks the possibility to send and receive funds between countries in a fast and cheap way. Using Swift’s services is more expensive and payments can take days to settle.
As per the report, the MOU is an extension of a September 2017 collaboration agreement between MUFG Bank and Bradesco. Nevertheless, both institutions are collaborating since 1973. At that time, MUFG Bank’s predecessor bank invested in this Brazilian institution.
Although it is not clear whether the institutions will be using the XRP cryptocurrency, this is clearly positive for the Ripple community. Back in October, Ripple provided its global payment network Ripplenet for MoneyMatch to process a cross-border transaction in Malaysia.
XRP is the third largest virtual currency in the market with a market capitalization of $20 billion dollars. Each XRP coin can be purchased for $0.5 dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
