Digital Assets: Ripple Invests In Money Tap, A Subsidiary Of SBI Holdings, Japan
Ripple will also move its headquarters to Japan.
Ripple Labs, the San Francisco-based technology company that facilitates cross-border payments through the use of its blockchain solutions via RippleNet, will invest an undisclosed amount in Money Tap. Money Tap offers the smartphone app of the same name. (Crypto-News-Flash)
Money Tap uses RippleNet, Ripple’s global payment, and settlement network, to effect various payment services on a 24-hour and real-time basis.
It is building a next-generation payment platform that will cater to customers at a much cheaper cost compared to the fees currently charged by the inter-bank system in Japan.
“Interbank transfer fees remain high in Japan and have not changed for more than 40 years,” said SBI Holdings.
Using its mobile app, customers are already able to transfer funds using a bank account number, a phone number, or QR code.
It intends to leverage its partnership with Ripple to launch new services such as:
- Corporate payments
- Community currency
- Overseas remittance services including inbound and outbound
- Supply chain financing
- Small amount collections
Sumitomo Mitsui Banking Corporation (NYSE: SMFG) recently invested in Money Tap.
Other institutions that support Money Tap include Sumitomo SBI Net Bank, Daiwa Securities Group Headquarters, Sumitomo Mitsui Trust Bank, Ashikaga Bank, Ogaki Kyoritsu Bank, and Seven Bank.
The investment by Ripple will presumably help route more business through the RippleNet network after its origination at Money Tap.
Meanwhile, SBI Holdings CEO Yoshitaka Kitao says Ripple is looking into Japan as a new location for its global headquarters.
Ripple developed RippleNet, a next-generation payment platform using blockchain technology, the underlying technology driving crypto-assets. The underlying digital asset used on RippleNet is XRP.
Ripple provides RippleNet to hundreds of financial institutions around the world, including major ones. The advantage of using RippleNet is the use of distributed ledger technology and allows institutions to share information through distributed ledgers.
RippleNet eliminates the delays, high costs, uncertainties, and opacity involved mainly in international remittances.
The tie-up with Money Tap, now bolstered with investment, will funnel Japanese remittances through Ripple.
Earlier this week, JPMorgan announced that an unnamed but large technology company was already using JPM Coin, JPMorgan’s (NYSE: JPM) digital currency developed in-house, for cross-border payments.
JPMorgan formed Interbank Information Network, a group comprising more than 400 banks and companies, to revamp global payments and prevent bounced transfers that cost money and lose time. The concept was to use the blockchain to operate a peer-to-peer network that would streamline cross-border payments.
The Interbank Information Network has now been renamed Liink. It is said to be a potential challenger to the SWIFT network.
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