MUFG To Use Ripple for Cross-Border Payments
November 13, 2018 12:38 pm
Japan’s largest bank Mitsubishi UFJ Financial Group (MUFG bank) and Brazil’s Banco Bradesco are going to partner with Ripple for a new cross-border payment service. The MUFG bank recently published a press release announcing that the two banks have signed a Memorandum of Understanding (MOU), aiming to co-develop the system.
Last year, MUFG announced that it is going to launch its own cryptocurrency. The bank provides services in Brazil and Latin America. Meanwhile, São Paulo’s Banco Bradesco is a leading universal bank in the region. The bank says that once the implementation is completed, the system will enable fast, transparent, and traceable international payments between Japan and Brazil.
The bank had also announced that it would join Ripple’s interbank group of leading transaction bankers. The group ensured operational consistency and legal clarity for supporting the Ripple global payments network. The new payment system’s name is yet to be revealed.
MUFG Bank was the first Japanese financial group to establish a presence in Brazil. Moving forward, the firm’s foothold in Latin America has increased to cross-currency bonds and finance across the region. MUFG’s services industries also include mining, natural resources, and food.
Ripple’s technology is increasingly being tested across the banking industry and specializes over its level of centralization. Now it is MUFG Bank and Banco Bradesco’s turn to put their weight on Ripple’s back.
Recently the National Bank of Kuwait partnered with Ripple. The bank announced that Ripple’s xCurrent payment solution would be used for the NBK’s new payment system. The bank has been preparing for its first transaction using xCurrent. The operation is developed for conducting a cross-border settlement service.
The National Bank of Kuwait tweeted the partnership on Twitter:
— National Bank of Kuwait (@NBKPage) May 29, 2018