The intention to find use of Ripple’s distributed ledger technology for showcasing international money transfer has been declared by Mitsubishi Corporation and Mitsubishi UFJ Financial Group. Utilizing the solutions that the blockchain based tech firm is offering has come as an idea keeping in mind that it will lower time and costs of transaction settlement – according to Mitsubishi Corporation. Also as an addition, for the remittance test – Standard Chartered UK will be present.
“We aim for practical use within a few years,” the statement highlights.
Accordingly, Singaporean dollars will be sent to Singapore from Thailand as a subsidiary of Mitsubishi Corporation will issue the transaction from Ayutaya Bank to a Singapore base of Mitsubishi Corporation Affiliate in Standard Chartered.
“In the current international remittance, we use a network of International Banking Communication Association (SWIFT) where financial institutions of each country participate. In many cases, it often goes through multiple banks, it takes a lot of fee and generally takes several days to remit.”
Previously, Axis Bank and Standard Chartered – financial institutions, have announced that they are planning to use Ripple Tech a new cross-border payment platform to be built.
The platform – which will connect corporates between Singapore and India – will be accessible through Standard Chartered’s Straight2Bank system. According to SC’s release, the platform will allow users to see all fees up front, pre-validate transactions and thereby more quickly settle them.
The managing director and global head of client access for Standard Chartered – Gautam Jain, stated:
“The successful launch of our commercial cross-border payment service marks a significant milestone in the financial industry’s progress in applying distributed ledger technology for corporates.”