SBI Ripple Asia, a joint venture between Ripple and SBI Holdings, will facilitate Cambodia’s first international remittance service. SBI Holdings will achieve this by collaborating with its subsidiary SBI LY Hour Bank to enable fund transfer between Vietnam and Cambodia.
The collaboration will also make the fund transfer process much faster, convenient and cheaper using the RippleNet, a distributed blockchain-powered payments network. RippleNet, a financial service by Ripple, utilizes XRP to facilitate real-time transactions between fiat and cryptocurrencies in a frictionless, efficient and convenient manner.
SBI’s CEO Yoshitaka Kitao released a statement on behalf of SBI Holding about the project:
“We will pursue synergies to the maximum in the future by generously providing new technologies such as distributed ledger technology (DLT) promoted by the SBI Group to companies inside and outside the group, especially in the rapidly developing Asian region. We would like to lead the globalization of finance utilizing cutting-edge technology, such as by leading to the development of a money transfer service that incorporates crypto assets.”
What does this partnership mean for Cambodia?
This partnership between SBI Holdings and Ripple to create SBI Ripple Asia will create a gateway between Vietnam and Cambodian banks. This will lower the fees for payments, and all the transactions will be registered on the blockchain in real-time.
SBI LY Hour Bank will be the first cross-border remittance corridor for Cambodia which will help the country with its financial difficulties and make the lives of millions of people a lot simpler.
SBI X Ripple
While Ripple faces scrutiny from the US Securities and Exchange Commission claiming XRP operates on unregulated security, SBI fully supports the platform. This partnership with SBI will rejuvenate Ripple following the allegations which severely affected the company.
MoneyGram, a reputable partner of Ripple, put a hold on its collaboration with the company. However, this partnership will promote XRP adoption in the Asia region regardless of the lawsuit Ripple is fighting in the US.
After the court case on Ripple is resolved, the company might go public, as expressed by both the CEOs of SBI Group and Ripple. Regardless of the ongoing case, this partnership will help Cambodia immensely and goes to prove another use case of blockchain technology.