SBI Remit, the international money transfer arm of SBI Group, has expanded its remittance services to the Philippines, Vietnam, and Indonesia, utilizing Ripple's native digital asset, XRP, for real-time transactions. This strategic alliance with Ripple and SBI Ripple Asia was announced on Wednesday.
The collaboration aims to provide faster and more cost-effective transfers and enhance SBI Remit's competitive edge in the international money transfer market. The targeted markets have demonstrated a high share of bank account-based transfers, making them prime candidates for the implementation of Ripple's technology.
SBI Remit initiated the use of Ripple Payments in 2017, a system that enables real-time settlement through XRP, which serves as a bridge currency between two legal tender currencies. By 2021, they had integrated solutions using digital assets and became the first in Japan to utilize XRP for transferring funds to cryptocurrency wallets in the Philippines.
In this newly established framework, SBI Remit triggers a remittance request from a customer, and Ripple responds by dispatching XRP in real-time. To facilitate this process, SBI Remit has partnered with TRANGLO Pte. Ltd., a leading financial transfer company, enabling customers to receive their transfers in local currency.
Utilizing XRP as a bridge currency offers two-fold advantages. It enables the rapid and cost-efficient transfer of funds due to the XRP Ledger's high throughput of 1,500 transactions per second and the ability to finalize a transfer in just four seconds. Additionally, it fosters scalability by facilitating transfers to Ripple's numerous global partners effortlessly.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.