Ripple to Build Blockchain Remittance for ASEAN Bank CIMB
CIMB to Utilize RippleNet DLT for ASEAN Remittance
CIMB will use RippleNet DLT product to target ASEAN countries with instant cross-border payments.
CIMB, which is active in fifteen countries including Malaysia, Singapore, Cambodia, and Thailand, will implement Ripple’s blockchain in its current remittance product, dubbed SpeedSend. The bank wants to resolve some of the existing problems in the ASEAN market with DLT solutions: mainly the slow, expensive and inefficient settlement process. According to the World Bank’s latest prediction, the remittance market in ASEAN will grow by 2.5% this year compared to 2017 and will reach $120 billion.
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience,” Garlinghouse said in the press release. “Now, by integrating Ripple’s blockchain technology, [CIMB] will enable their customers to send vital funds to family, friends and loved ones more efficiently.”
As part of the deal with Ripple, CIMB will analyze how it can utilize Ripple’s technology across other parts of its business. The bank also became the latest member of RippleNet payment project.
The California-based startup is targeting the financial services market with two projects: xCurrent, a DLT settlement system for international transactions, as well as xRapid, which is a similar product but with the utilization of XRP coins in the facilitation process. Several multinational financial services companies have already become part of RippleNet, including Japan’s bank MUFG and Spain’s Santander. Earlier this week, MUFG announced a plan to develop a cross-border payment system between Japan and Brazil by using Ripple’s technology.
RippleNet has several major competitors including R3 Corda of David Rutter and the Linux-led project Hyperledger.