CIMB Bank Joins RippleNet As It Integrates Tech To SpeedSend Solution
The fifth-largest bank from the Association of Southeast Asian Nations (ASEAN), CIMB group has become a Ripple’s strategic partner, reports Ripple’s official blog.
As a part of this newly signed collaboration, Malaysian CIMB group is going to utilize RippleNet blockchain-based payment system to enhance their existing SpeedSend solution, making them one of the first banks in the region to use the blockchain technology for international payments.
CIMB can now dominate the region
“We are delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple,” said the CEO of CIMB Group, Tengku Dato’ Sri Zafrul Aziz when asked about the new deal.
He also explained that this and similar blockchain-based solutions have the potential to evolve international remittances, adding that CIMB is always looking to improve its digital banking services and provide the most cost-effective payments for their ASEAN-based customers.
Meanwhile, Brad Garlinghouse, the CEO of Ripple, praised CIMB, proclaiming them to be the leader among the banks in the area. He didn’t fail to mention SpeedSend as the best cross-border payment solution in the region, which will now be even more efficient.
Garlinghouse also said that every day more banks get interested in the blockchain-based addition to their existing fintech solutions due to the transparent and efficient nature of this new technology, and concluded that, “with its focus on innovation, CIMB will continue to be a dominant force in the region for years to come.”
ASEAN is an important market
According to the World Bank, remittances in the ASEAN area have the potential to grow to $120 billion this year. Looking further into the future, the Boston Consulting Group (BCG) projected that until 2026, roughly 39% of the global remittance could be centered in the ASEAN area.
Taking into account that that global international remittance is, according to BCG, bound to reach the astronomical $47 trillion, we can see why Ripple is so delighted to finally penetrate such a fertile market.
Ripple’s new partner, CIMB group has a widespread operation, encompassing these countries:
- China & Hong Kong
- United Kingdom
- Sri Lanka
- United States
With over 800 branches in these geographies, it is understandable why this Southeast Asian banking giant is going to be a perfect springboard for Ripple in the area.
Ripple doing well as a company
Ripple is expanding its business in a quick and efficient manner, adding more financial institutions to their list of over 100 as RippleNet is by far the most adopted blockchain fintech solution.
Loved by some and hated by the others, this blockchain-based remittance solution provider cannot be denied its rightful place as one of the leaders in the blockchain industry. Although, the role of the XRP token in its ecosystem and the impact of all these partnerships on the demand for the token are still very blurry.
Their targeted audience has embraced Ripple’s technology due to the fact that it speeds up cross-border transactions, also making them much cheaper in the process.
Ripple has chosen its path and as it looks, only Stellar poses a serious competitive threat. Ripple’s charge towards success can hardly be slowed down.
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