BankDhofar, the second largest bank in Oman in terms of market value, has reportedly begun using Ripples technology to facilitate cross-border payments.
The bank will use RippleNet to help users sent money to India, according to a tweet posted by Navin Gupta, Ripple’s managing director for South Asia and MENA regions.
San Fransisco-based tech and software company Ripple developed the blockchain-based RippleNet as a payment network designed to help institutional payment providers facilitate faster and cheaper transactions.
The platform has since experienced considerable growth over the years, with its customer network expanding to well over 200 by January.
The platform’s rapid growth now sees it boast of having some of the major payment providers within its ranks, including firms like JNFX, Transpaygo, SendFriend, FTCS and the Euro Exim Bank.
BankDhofar becomes the first bank in Oman, and among the first within the Asian and Middle East region to officially adopt the RippleNet technology, according to the announcement.
Ripple will use its cutting-edge technology to enable the Omani bank to facilitate mobile-based money transfers that go through within minutes. The availability of the mobile banking app is expected to offer non-resident Indians in Oman to send and transfer money in real-time.
Incorporated in 1990, Bank Dhofar has developed to become a leading banking institution in the Sultanate of Oman. The financial provider offers corporate, retail, and investment banking services.
In 2017, the bank’s revenue accrued from its banking services reached a reported $2.4 million. The total income from its services and investments was $28.2 million.
In September last year, Bank Dhofar and the National Bank of Oman (NBO) were reportedly appointed HSBC Holdings and the UBS Group as financial advisors who would oversee their merger talks.
The two banks were eyeing a merger that would create a single bank with nearly $20 billion in assets. However, in December, the Commercial Bank- which holds about 35 percent stake in the NBO- expressed its opposition to the proposal.
Multiple banks, payment providers and remittances have over the last couple of years looked to utilize Ripple’s technology in streamlining payments.
United Arab Emirates’s Finablr, payments, and foreign exchange operator, joined RippleNet last month, in a development that would see Finablr’s UAE Exchange launch a remittance platform for real-time money transfers from the region and across the globe to Thailand.
The exchange would use its partnership with Thailand’s Siam Commercial Bank to allow the users to send funds to Thailand from anywhere in the world.
The UAE Exchange’s move followed that of the National Bank of Kuwait (NBK). In December last year, the NBK used the RippleNet technology to launch its NBK Direct Remit- an international money transfer service.
The financial institution thus became the first in the country to establish a remittance platform facilitating real-time international payments over the blockchain.
In September, Ripple announced that Thai’s Siam Commercial Bank (SCB) would be the first banking institution to leverage its “multi-hop” feature. The feature allows the bank to settle payments for another financial institution frictionless using Ripplenet.
Other major banks to use or pilot the RippleNet technology include Spain’s Banco Santander and BBVA.
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