It’s reported that Ripple, the provider of enterprise blockchain and cryptocurrency solutions for global payments, is to launch RippleNet’s first live On-Demand Liquidity (ODL) service implementation in Japan.
The launch will be directed in collaboration with SBI Remit Co. Ltd., the largest money transfer provider in Japan and one of the most prominent mobile wallet services in the Philippines.
This expanded partnership will see SBI Remit connect with Coins.ph and digital asset exchange platform SBI VC Trade on RippleNet for faster and more affordable cross-border payments from Japan to the Philippines. With ODL now available in Japan, RippleNet customers can leverage the digital asset XRP to eliminate pre-funding and reduce operational costs, unlocking capital and fuel the expansion of their payments businesses.
“The expansion of our relationship with SBI Remit to kickstart RippleNet’s ODL service in Japan marks a major milestone in one of our largest markets. SBI Remit has been a leader when it comes to embracing new technology to deliver the best customer experience,” comments Asheesh Birla, General Manager of RippleNet at Ripple. “We are excited to partner with forward-looking companies like SBI that see the value in blockchain technology and to support them in preparing for a crypto-enabled future.”
Driven by long-term growth trends of foreign workers and cross-border e-commerce in Japan, there is an expected increase in low-value, high-frequency remittances. The Filipino diaspora is currently the third-largest in Japan – in 2020, remittance flows from Japan to Philippines sent by overseas Flipino workers totaled approximately $1.8 billion dollars. On top of that, Japan has one of the highest cross-border payment fees in the world. According to The World Bank, remitting from Japan incurs an average cost of 10.5%, while the average cost of sending remittances from G8 countries is 5.92%.
“We see tremendous potential in leveraging blockchain technology to transform not only the way payment transactions are made but in how we manage our business by unlocking trapped capital,” said Nobuo Ando, Representative Director of SBI Remit. “The launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.”
The APAC region is exploding with growth and opportunities for RippleNet in response to progressive crypto regulation and innovative companies, such as SBI Remit, looking to lead in the crypto space. Asia Pacific is one of the fastest-growing regions for Ripple with transactions growing 130% year-over-year. In this next phase of the partnership, SBI Remit will connect with other established partners on RippleNet and utilise XRP to accelerate their high-performance payments business.
“Fintech innovation is the key to achieving quicker and more secure financial transactions,” said Nauman Mustafa, CEO of Coins.ph. “With the support of SBI Remit and Ripple, we look forward to enabling greater customer experiences by bringing faster and cheaper cross-border payments between Japan and the Philippines, taking a step closer towards revolutionising the financial system.”
As more enterprises look towards integrating crypto-enabled services into their offerings, SBI Remit will join existing ODL customers in APAC, such as Novatti and Tranglo, in playing a vital role on RippleNet as fiat on and off-ramps. SBI Holdings is an investor and shareholder of Ripple.