SBI Ripple Asia and SBI Fintech’s subsidiary SBI Remit joined hands to initiate money transfer services between Japan and Vietnam using blockchain technology.
Announced on Friday, the Japanese companies partnered with Tien Phong Commercial Joint Stock Bank, a local Vietnamese bank, for making the transfers in fiat currency.
SBI Remit is already using MoneyGram’s service to transfer funds within its network of partnered banks. For transferring to its Vietnamese partner, the company will use RippleNet. Notably, Ripple invested $30 million in MoneyGram earlier this year to get its grip on the existing cross-border payments market.
Commenting on the development, Yoshitaka Kitao, representative of the SBI Group, said: “The booming Vietnamese economy is one of the most attractive markets around the world. TPBank, which the SBI Group has invested in, in 2009 and owns a 19.9% share of, has achieved steady accumulation of loans and non-interest income such as settlement services, by actively utilizing cutting-edge technologies.”
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“The adoption of RippleNet will further differentiate the company from its competitors. We will also develop remittance services that incorporates crypto-assets in the future.”
A major remittance market
Japan has a sizable number of Vietnamese living in the country. The number surged over the past five years to reach above 330,000 by the end of 2018.
Meanwhile, Ripple is also expanding aggressively in global markets. The company recently partnered with Finastra in the United Kingdom to allow its customers to use cross-border payments services through RippleNet.
“Our cooperation with SBI Ripple Asia Co., Ltd on the application of blockchain technology in cross border money transfers marks an important turning point in enhancing our customer experience and makes international money transfers via TPBank faster, more convenient and safer than ever before,” Nguyen Hung, CEO of Tien Phong Bank, added.
“Transactions are executed faster while ensuring safety and transparency and cash flows will still be legally transferred via foreign banks to Vietnam. At TPBank, transactions are ensured to comply with all domestic and foreign regulations including AML.”