Ripple announced on Wednesday that it has reached agreements with five major financial institutions in the emerging markets including Brazil and South America’s biggest bank, Itau Unibanco Holding SA. The banks will join Ripple’s blockchain international money transfer network, RippleNET.
Five new financial institutions have joined RippleNet and will use xCurrent or xVia to strengthen emerging markets access into India, Brazil and China. https://t.co/pjTAbXWbUR
— Ripple (@Ripple) February 21, 2018
The institutions include two banks, Brazil’s Itau Unibanco Holding SA and India’s IndusInd Bank Ltd as well as three payment providers, namely: Beetech (Brazil), InstaReM (Singapore), and Zip Remit (Canada). Whereas Beetech and Zip Remit will use Ripple’s xVia global payment solution, InstaREM will use the xCurrent alongside Itau Unibanco Holding SA and IndusInd Bank Ltd.
The San Francisco based company identified the emerging markets as a part of its key interest as they have the 85% of the world’s population with 60% of global GDP. In the words of Patrick Griffin, Ripple’s senior vice president for business development, “The payments problem is a global problem, but its negative impact disproportionally affects emerging markets. Whether it’s a teacher in the U.S. sending money home to his family in Brazil, or a small business owner in India trying to move money to open up a second store in another country, it’s imperative that we connect the world’s financial institutions into a payments system that works for their customers, no against them,”
Ripple develops solutions that use blockchain technology to enable instant cross-border transfer of money at lower transaction fees compared to its conventional competitors like Swift.
Ripple has continued to grow its network especially the RippleNet which already has more than 100 institutions using it for end-to-end payment settlements. Last week, the company announced landmark trials with Western Union and Saudi Arabian Central Bank (SAMA) for xRapid and xCurrent respectively.