The largest bank in Japan in terms of trading income, fee & commission income and net interest income, MUFG, will join forces together with one of the biggest banking and financial services companies in Brazil, Banco Bradesco to introduce a new cross-border payment service using the Ripple technology.
Using the Ripple Token to Facilitate International Transactions between Banks
The two big banks signed a Memorandum of Understanding (MOU) with an agreement to co-develop the system. The largest banking group in Japan, Mitsubishi UFJ Financial Group, also recently stated that they would launch their own cryptocurrency. They provide specialist services in Brazil and Latin America. The Sao Paulo based Banco Bradesco is the top bank in the region.
Immediately implementation has been done, the system would allow for quick, transparent and dependent transactions in inter-country payments between the Asian and South American nations.
The Mitsubishi UFJ Financial Group, MUFG had earlier stated in 2017 that it was going to join Ripple’s interbank group of leading transaction bankers. The aim of the group is to make sure that operations are consistent and legal processes are clear in order to support the Ripple global payments network.
The History between the Two Key Banks
The Memorandum of Understanding (MoU) is an extension of an agreement between the two banks last year September 2017. Relations between the two banks had started in 1973 when an MUFG predecessor invested in the Brazil bank.
The Mitsubishi UFJ Financial Group was the maiden Japanese financial group to establish a presence in Brazil as one of its predecessor banks had in 1919, created a branch in the second largest city in Brazil, Rio de Janeiro. Since that period, the bank’s presence has developed in Latin America, and it now provides cross-currency bonds and finance across the region. It services several industries which include mining, natural resources, and the food industry.
The Ripple technology is, to a large extent, being tested in the banking industry due to the token’s several signups to its blockchain network RippleNet. The token has been highly criticized and lashed out by enthusiasts in the crypto world as the Blockchain is supposed to allow for peer to peer transactions and decentralization, all of which the traditional banking industry stands against. The addition of MUFG Bank and Banco Bradesco have put more weight behind the Ripple platform.
The only thing more prevalent than the big shots in the financial world supporting the Ripple token appears to be the presence of celebrities. Some of the notable celebrities throwing their weight behind the Ripple platform are Ashton Kutcher and the former president of the United States, Bill Clinton.
The price of Ripple has been a bit subdued this month, hovering around the $0.50 mark for a some weeks now.