The Malaysian banking group CIMB has joined Ripple’s blockchain-based payment network RippleNet and is looking for faster cross-border payments.
A strategic partnership between the companies addresses the need for “faster and more cost-effective international payments” across the Association of Southeast Asian Nations (ASEAN), Ripple said on Wednesday.
In particular, Ripple’s blockchain-based solution was used to expand CIMB’s existing proprietary remittance system, SpeedSend. The RippleNet integration already facilitates “instant” transfers via corridors such as Australia, USA, Great Britain and Hong Kong, according to the bank.
As part of the partnership, CIMB also plans to expand the Ripple solution to other use cases within the group. SpeedSend currently serves people sending money to a number of predominantly Asian countries, including the Philippines, Japan, Singapore, Thailand, and India website.
Brad Garlinghouse, CEO of Ripple said:
“We see that banks and financial institutions from all over the world rely on blockchain solutions because it enables a more transparent, faster and cheaper payment experience.”
While Ripple offers several payment solutions, one of which uses the XRP crypto token, the companies have not disclosed which one is used by CIMB.
The World Bank predicts that remittances to Southeast Asia will grow to $ 120 billion by the end of 2018, while global remittances are expected to grow by $ 642 billion.
CIMB Bank Image via Shutterstock