The principal banking unit of Mitsubishi UFJ Financial Group (MUFG) announced the signing of an MOU with Banco Bradesco for the development of a new cross-border payment service, which will use Ripple’s technology. MUFG Bank is MUFG is a parent company to Japan largest bank (MUFG Bank) with its headquarter in Tokyo and one of the main companies of the Mitsubishi Group. However, Banco is one of Brazil’s largest bank with its headquarter in Osasco. Ripple is a Californian FinTech startup, which specializes in providing cross-border payment solutions. RippleNet is its global payment network that connects payment providers and banks to provide frictionless experience when sending and receiving money globally.
Ripple to establish first XRP powered Japan to Brazil cross-border payment
The official Twitter handle of Ripple published a post today, wherein it announced that Japan and Brazil are to see a new cross-border remittance service soon. This is being achieved as the representatives at Ripple are pushing for a wider adoption of the blockchain technology in FinTech. The original tweet read:
“@Bradesco and @btmu_official are leveraging Ripple’s #blockchain technology to create a new cross-border payment service between Japan and Brazil.”
A document by MUFG Bank Ltd. was also released on the news. MUFG, which is the principal banking unit of the Japanese financial group Mitsubishi, stated that Banco MUFG Brasil S.A. [an MUFG Bank subsidiary] has signed a Memorandum of Understanding [MoU] with Banco Bradesco S.A. for the purpose of collaboration on a new cross-border payment service between Japan and Brazil.
In this scenario, Ripple emerges into the picture to power the technological advancements of the service through blockchain. Furthermore, the payment system has also been designed by Ripple wherein the upcoming service is aimed at being fast, transparent and traceable.
This is not the first agreement between the MUFG Bank and Bradesco. In fact, the MoU is a continuation of the collaboration between the parties from last year. If Ripple’s power-set RippleNet begins to act as an effective tool in cross-border payments, it could be observed as a disruptive change in the industry. This event would also have an extensive impact on the price of XRP in the cryptocurrency market as well.
Alex Cobb, an XRP investor and cryptocurrency market enthusiast wrote:
“Perfect exotic corridor for xRapid Utility.
Proud to be a Mitsubishi owner”
Nerve2tweet, a cryptocurrency and blockchain follower also commented:
“Are they using $XRP?? Implementing Xcurrent will not benefit xrp holders, only when XRapid start transferring XRP will benefit us, so have a tab on it!!”