Japan’s Largest Bank MUFG & Mitsubishi Corp. Testing Ripple for Cross-Border Payment

Japan’s largest trading company, Mitsubishi Corporation along with world’s third largest bank, Mitsubishi UFJ Financial Group and Standard Chartered Bank are going to pilot test the cross-border payments over RippleNet.

Big players to pilot test RippleNet

According to the translated version of the Yahoo Japan, the third largest bank in the world and the largest bank in Japan, Mitsubishi UFJ Financial Group (MUFG) and Mitsubishi Corporation will begin the demonstration of cross-border payment by using RippleNet this month itself.

This demonstration will also be joined by the Standard Chartered Bank of UK that aims to reduce the remittance time and cut down the cost. The article also points “We aim for practical use within a few years.”

The experiment will be conducted to remit the Singapore dollars from Thailand to Singapore. The official press release by Mitsubishi corporation states:

“MC, MUFG Bank, Krungsri and Standard Chartered have been working together to improve financial efficiency internally using next generation technologies. This pilot test is the first result of a joint project between the companies to improve cash management with a real-time, multi-currency, multiple-bank platform.”

As the press release points out,

“It is the first time for a Japanese company to conduct cross-border payments over RippleNet.”

Talking about the existing system for the international remittance, the organization uses the popular SWIFT international payment network. This system apparently involves multiple banks that take a number of days and a substantial amount of fee to remit.

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Ripple to offer cost & time reduction

In comparison to Swift, RippleNet is cheaper than the ordinary international remittance. They even expect it to shorten the time taken as well to a great degree, moreover, “it is said that fraud such as data tampering is unlikely to occur.”

Recently, one of the financial products of Ripple, xRapid successfully completed its pilot trial for cross-border transfer between the US and Mexico. The trial reduced the cost by 40 to 70 percent while taking just about 2 minutes to complete the transaction.  

Last year, at the end of March, MUFG officially joined Ripple’s Global Payments Steering Group (GPSG) and joined the ranks of Bank of America Merrill Lynch, Santander, Standard Chartered, Westpac Banking Corporation, Royal Bank of Canada, and CIBC for “overseeing the maintenance and enhancement of payment transaction rules and formalized standards for commercial use of Ripple’s network.”

Currently, Ripple price at $0.746 with a 0.51% rise in its prices while other cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, EOS among others are experiencing the dip.

What do you think of such big players using Ripple Technology? Let us know your thoughts in the comment section below!