In Japan, SBI Remit Co., Ltd. and SBI Shinsei Bank, have made a business partnership to improve international remittance services, focusing on faster and more cost-effective cross-border payments.
In this collaboration, a key aspect is SBI Remit’s prior exploration of Ripple’s distributed ledger technology. This may also suggest there will be potential use of XRP or RLUSD to enhance efficiency.
SBI Remit was founded in 2010 after Japan’s Payment Services Act was enacted. Since then, it has been a key player in international money transfers, especially serving foreign residents in Japan who send funds to their home countries.
SBI Remit has been a pioneer in integrating cutting-edge fintech solutions, including Ripple’s blockchain, to make international transfers faster, cheaper, and more secure. The company has already used RippleNet to speed up transactions and lower costs.
With this new partnership with SBI Shinsei Bank, SBI Remit could further expand the use of Ripple’s ecosystem, including XRP or RLUSD (Ripple’s proposed stablecoin), for remittances. Additionally, the company intends to make its services available to people and companies that traditionally relied on traditional banks for foreign payments.
SBI Shinsei Bank is also part of Project Agorá, an initiative exploring Central Bank Digital Currencies (CBDCs) and other tools for cross-border payments. This supports Ripple’s goal to integrate its technology into global banking, which could make XRP or RLUSD valuable assets in the growing system.
A report from Swift News shows that 56% of SMEs worldwide use fintech services alongside banks for international transactions. In Japan, however, bank-fintech partnerships are still growing.
This collaboration between SBI Remit and SBI Shinsei Bank sets an important example, combining Ripple-powered fintech solutions with traditional banking.
The two companies also want to pursue further partnerships within the SBI Group to ensure continuing innovation based on SBI Holdings’ “Customer-centric Principle.”
Also Read: 80% of Japanese banks set to adopt Ripple’s XRP by 2025
