- SBI Group’s remittance arm, SBI Remit, has partnered with Ripple and SBI Ripple Asia to offer XRP-based remittance services to bank accounts in Southeast Asian countries.
- This expansion includes the Philippines, Vietnam, and Indonesia, allowing fast and cost-effective cross-border remittances using XRP as a bridge currency.
- SBI Group expects high adoption due to the significant volume of remittances to bank accounts in these countries and plans to roll out the service within the current month.
SBI Remit Co., Ltd., a leading player in the international money transfer service industry under the SBI Group, has announced a major expansion of its collaboration with Ripple and SBI Ripple Asia. This collaboration will lead to the launch of international remittance services that will use the cryptocurrency XRP as a bridge currency to bank accounts in Vietnam, the Philippines, and Indonesia.
“SBI Remit has been using Ripple Payments, provided by Ripple, for its international remittance services since 2017,” according to the official press release. “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 is not SBI Remit’s first attempt into the domain of XRP-based remittances. In 2021, the firm will introduce a service aimed at digital wallets in the Philippines, making it a pioneer in Japan in utilizing XRP as a bridge currency for international remittances.
The newly announced scheme is designed to simplify 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,” according to the official press release. This innovative solution is made possible by a strategic partnership with Tranglo Pte. Ltd., a long-term RIpple partner, which ensures that consumers receive remittances in their local legal currency.
“By using XRP as a bridge currency, you can send money quickly and at a low cost,” SBI stated. “Furthermore, it has excellent scalability, allowing users to easily send money to Ripple’s partners around the world, and we believe that this will lead to stronger competitiveness in the international Remittance business.”
The move to target the Philippines, Vietnam, and Indonesia was a strategic one. These countries have a high proportion of remittances channeled to bank accounts, making them ideal candidates for XRP adoption. SBI Remit believes that launching this XRP-based remittance service would drive crypto adoption in these countries.
Yoshitaka Kitao, chairman and CEO of SBI Holdings, announced the news, emphasizing the company’s dedication to innovating international remittance services. According to the news statement, while the current service is limited to three Asian nations, SBI Remit is committed to increasing 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, as well as expand services with a view to corporate transactions and inbound transactions,” the company noted.
At the time of publication, XRP was trading at $0.5005.