The service uses RippleNet to create a payments corridor between banks in Cambodia and Vietnam.
SBI Ripple Asia Co., a joint venture between SBI Holdings and Ripple which was established back in 2016, is widening its reach in Asia according to the latest announcement. The company revealed that in collaboration with SBI LY Hour Bank, it will be able to facilitate Cambodia’s first international remittance service using blockchain. It further confirmed that after successful tests it has obtained the necessary approval from the Central Bank of Cambodia.
Using RippleNet, the new partnership will facilitate faster, secure, and more convenient fund transfers in the region. According to the announcement, RippleNet will offer a highly convenient real-time service with and the lowest fees for international remittances between Cambodia and Vietnam. In the past, this has been a slow and expensive process that takes two to three days.
RippleNet is a global payment network built by Ripple to connect financial institutions to a single API. It allows institutions to offer fast, cheap, and reliable payment solutions to companies and their customers using blockchain technology and the XRP cryptocurrency.
SBI LY HOUR bank is an upcoming bank that has been making huge strides in the region. Having started as microfinance in 2012, the bank only got its commercial bank license from the National Bank of Cambodia, in March 2020. A little after a year since its licensing, it is partnering with financial service giants SBI Holdings to bring financial solutions to the region.
SBI LY HOUR Bank CEO Soeurng Uth said:
To have such real-time and low-cost money transfers, the new service absolutely benefits the Cambodian people. Customers will be able to quickly transfer out via our bank partnerships. This connection allows customers who have a Bakong account – the mobile payment system initiated by National Bank of Cambodia – to instantly make fund transfers into their account.
SBI Holding already has a distributed ledger technology (DLT) agreement with Tien Phong Commercial Joint Stock Bank (TP Bank) which will facilitate remittance in Vietnam. The financial giant partnered with the Vietnamese bank in August 2009 and currently holds a 19.9 percent share.
SBI sticking with Ripple
Since partnering with Ripple, SBI Holdings has been one of its greatest advocates and has opened a huge market in the Asian region. For Ripple, SBI is one of its most strategic partners, helping drive XRP adoption. For SBI Holdings, Ripple has given it access to next-generation payment infrastructure.
Even now that the company behind XRP is facing a lawsuit from the SEC, SBI has stuck with the company and is optimistic that Ripple will prevail. In fact, recently, SBI expressed its desire to see Ripple go public as soon as the court case is settled.
Original Source : coindesk.com
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