MUFG-Banco Bradesco Ripple Integration
Japan banking giant MUFG has inked a strategic partnership with Brazils Banco Bradesco. Under the terms of the agreement, the two are to develop a cross-border payment service on top of Ripple Network. The banking giants intend to commercialize the cross-border payment service between the two countries. The two are coming together to leverage Ripple blockchain network to create a money transfer platform that does not rely on intermediaries. The initial plan is to come up with a service capable of facilitating high-speed transparent and traceable payments.
By leveraging Ripple Network, the two hope to reduce the time it takes to process cross-border payments. Current systems take between three to five days to process large cross-border payments. By joining Ripple Network, MUFG and Banco should gain access to standardized decentralized infrastructure. Cost reduction is another benefit that the two stand to gain. Current payment networks come with high processing and liquidity costs. Transaction fees can rise from $25 to $35 per transaction. However, with the help of the Ripple network, processing costs are being reduced – regardless of the size of the transaction.
MUFG and its Brazilian counterpart remain optimistic that Ripple Network will be up to the task to support the service. Ripple Network is a leading specialist when it comes to cross-border payment solutions. Its RippleNet product has successfully connected banks and various payment providers offering a frictionless experience for money transfer.
“The new payment system – developed by Ripple, a San Francisco-based software vendor – will assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil,” MUFG in a statement.
Ripple Blockchain Edge
The new agreement should go a long way in solidifying Ripple’s blockchain when it comes to facilitating financial services. MUFG first took note of the Ripple Network in September. At the time, the bank’s representative, Steven Diep, touted how the blockchain network could provide satisfactory results compared to the SWIFT messaging system.
Ripple’s cross-border solutions have gone a long way in strengthening token XRP sentiments in the sector. A bullish streak in recent months has seen the token’s market cap surpass that of Ethereum be it for a short period.
Given the ripple effect Ripple is having in the financial sector; chatter of a possible merger with SWIFT continues to gain momentum. However Swift is yet to respond to the claims as it emerges it is more interested, for now, in competing rather than collaborating. SWIFT has also started exploring blockchain technology as it also seeks to enable real-time cross-border payments as its peers.
MUFG Bank is one of the companies under the Mitsubishi Group umbrella. Headquarter in Tokyo Japan it comes with over 360 years of history. Banco Bradesco, on the other hand, is one of the biggest banks in Brazil.