XRP to power international remittance for banks in Philippines, Vietnam and Indonesia through SBI Remit

6 September 2023

in XRP

Reading Time: 3 mins read

XRP will soon be used by banking institutions in three more Asian countries for international remittances powered by SBI Remit.
Banks in the Philippines, Vietnam and Indonesia will have access to international transfers through XRP, powered by SBI’s money transfer unit.
XRP price sustained above $0.50, on track to recover from its August 17 low of $0.42.

XRP is the crypto asset that will be used to power the international remittance service of banks that avail SBI Remit in three Asian countries. Japan’s largest remittance technology firm announced on Wednesday a new project which will enable the usage of XRP in remittance services for banks in the Philippines, Vietnam and Indonesia.

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SBI Remit announces XRP usage in international remittances

In a recent blog post on the SBI Remit website, the remittance-technology firm shared plans to expand the use of the altcoin XRP to settle international payments for banks located in several Asian countries: Philippines, Vietnam and Indonesia.

SBI Remit is a subsidiary of Japan’s SBI Group. In 2021, Ripple launched on-demand liquidity to power international payments from and to the country. The goal was to make remittances faster and cheaper for Japan.

The firm is extending a similar service to its banking clients located in these Asian countries. SBI Remit said it will use XRP to reduce the cost and the waiting time involved in international remittances.

The firm already uses XRP as the digital currency of choice for its remittances and transfers and as a bridge between two legal currencies. By extending this service to banks in Asian countries, SBI Remit is likely driving the utility of the altcoin higher. The bank plans to roll out the service by the end of September.

Higher utility is associated with widespread adoption, fueling a bullish narrative for the asset. At the time of writing, XRP trades at around $0.50, recovering from its August 17 low at $0.42.

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.

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