Ripple’s cross-border transaction go globally speed up currency liquidity
【Published by Ennio Y. Lu】
The NBK has reportedly become the first financial establishment in Kuwait to implement a remittance product — “NBK Direct Remit” — for international live payments based on RippleNet’s blockchain technology. The product will purportedly speed up cross-border money transfers.
The National Bank of Kuwait has launched a product they’re calling “NBK Direct Remit,” a blockchain-based product which uses RippleNet for cross-border payments from within the GCC region. Established in 1952, the NBK is the largest financial institution in terms of assets in Kuwait. Per the bank’s 2017 annual report, the NBK has over $86.3bn in total assets. According to the bank’s website, this product will help preserve NBK’s dominance as the country’s primary way of moving money. Now, the service has opened a digital financial corridor to Jordan. It is expected that in the next few months it will cover even more countries and regions.
Recall that the NBK has offices in China, Geneva, London, Paris, New York and Singapore, as well as in regions in Lebanon, Jordan, Egypt, Bahrain, Saudi Arabia, Iraq, Turkey and the United Arab Emirates.
The NBK charges a fee of 1 KWD, Kuwaiti dinar ($ 3.29) for each transaction from Jordan (if funds are sent to its local branch). For customers using other banks, it will charge 5 KWD (US $ 16.47) per transaction. The limit for transactions is limited to 2000 KWD (US $ 6,586).
Marcus Treacher, SVP of customer success at Ripple, said his firm has started moving live payments across its blockchain network on behalf of NBK customers.
NBK joins the growing number of financial institutions worldwide to have partnered with Ripple for its blockchain-based payments services. Most recently, these include Malaysian banking group CIMB, South Korea’s crypto exchange Coinone, U.S. banking giant PNC, remittance firm UAE Exchange, among others.
In November, Malaysian lending giant CIMB Group Holdings Bhd joined RippleNet. CIMB will integrate Ripple’s XCurrent product, a software solution for expediting cross-border payments, for its “SpeedSend” remittance product.
Also that month, Japanese bank and financial services firm Mitsubishi UFJ Financial Group, Inc. said it will use Ripple to create a new cross-border payments service to Brazil through partnership with Banco Bradesco. The product aims to “assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil.”
The remittance market is growing across the globe, including the Middle East region. According to the latest figures from the World Bank, migrants exchanged $53 billion in 2017 alone to the Middle East and North Africa markets. The remittance market in Southeast Asia is in great demand. To improve the efficiency of cross-border payments, the blockchain is considered to be a potential technology.
■ Source: blocktempo
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