MUFG, the world’s fifth largest bank by total assets, announced on November 9, 2018, that they have signed a Memorandum of Understanding with Sao Paulo-based Banco Bradesco, to enable a new cross-border payment service between Japan and Brazil.
The official press release issued by the MUFG, states that the key focus of the collaboration between them and Bradesco, a leading universal bank in Latin America is to create a platform that enables secure, economical and faster money transfers directly and without intermediaries. The press release notes that both the parties entrusted Ripple Inc, the creator of the XRP as the best option for the project:
“Through this MOU, MUFG Bank has decided to start the collaborative development for cross-border payments between Japan and Brazil, utilizing Ripple’s cutting-edge technology. The new payment system – developed by Ripple, a San Francisco-based software vendor – will assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil”.
Adding another set of achievements in its armor, Ripple consolidates its position as a leading company in the financial services market. A few weeks ago, xRapid was introduced and since then the valuation and the public image of the company have been steadily improving.
MUFG and Ripple
Japan’s largest Bank have had vocally shown its support and interest towards Ripple’s blockchain project. In a conference published in September by Steven Diep, Ripple was appraised by a representative of the bank, for being much better than the traditionally results obtained using the SWIFT messaging system:
“Today, for many of us, we may have to go through SWIFT and encounter charges; many intermediary banks are part of that, and typically an SLA for fund transfer or movement is between one and three days.
Using technology such as Ripple, we can get that done to something like 30 seconds, which is significantly different and at a cheaper cost as well in terms of moving money between our branches, between our different countries within our network. That’s really important to us.”
— Steven Bull From the Diep (@DiepSanh) September 3, 2018