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SBI Remit has partnered Michinoku Banks. Interestingly; the bank’s 94 stores are going to be helping SBI Remit in perfecting remittance through Ripple technology.
SBI Remit in a statement said it signed a business alliance agreement with Michinoku Bank purposely for its international money transfer service.
The fintech firm says there is a high increase in funds sent out of Japan due to the heightening number of foreign workers.
At the moment, there is a high shortage of labor in Japan, and this is a result of the aging population and the declining birthrate.
In Aomori Prefecture alone, SBI Remit aims at offering a tailored payment system for foreign workers in the state through a link with Michinoku’s 94 stores and 2 branch offices.
SBI says it has improved its remittance service by embracing new technology like the Ripple Labs Inc. distributed ledger technology.
SBI will leverage Michinoku’s solid network in the region to coast the mind of foreign workers who want to make cross-border payments to their loved ones.
There are around 4000 workers in the region alone, hence the need for a reliable remittance service in the state.
According to the release, Michinoku Bank will also benefit from the collaboration by getting high value-incentive services that are customer-centric.
SBI Remit to Use XRP through Ripple’s On-Demand Liquidity (ODL)
In October 2019, SBI Remit in a report promised to begin the use of XRP-powered On-Demand Liquidity (ODL) to service cross-border payment.
Already, SBI Remit makes use of MoneyGram’s remittance service, another initiative making use of Ripple’s ODL for payment into Mexico and some other countries.
According to the same report, SBI says SBI Ripple Asia, a consortium of banks created to increase the adoption of Ripple in Asia, will be in charge of over 50% of Ripple’s network.
This statement comes nearly a month after SBI launched the MoneyTap service, an application subsistent on Ripple’s payment technology.
The owner of SBI Remit, SBI holdings, has been a long time pillar of support for Ripple and XRP. The firm also pays its shareholders in XRP and gives those who open accounts on its SBI VC Trade crypto exchange some XRP tokens.
Ripple has a strong collaboration with big financial institutions across the world. The blockchain enterprise has over 300 customers in its network already, and still aims to partner with more in the nearest future. However, some of these banks are not using XRP token.