Japanese MUFG Bank and Banco Bradesco from Brazil are collaborating to develop a cross-border payments service on the distributed ledger technology (DLT)-based platform of Ripple. The giant banks inked a memorandum of understanding (MOU) so that they can use the network of Ripple for commercializing transparent, high-speed and traceable payment between Brazil and Japan.
MUFG prefers Ripple out of all the Japanese and Koran banks that seem to be finding out ways to come up with real-time cross-border transfers of funds services and hence chose it for this joint venture.
MUFG and Banco Bradesco cross-border payments service details
MUFG Bank is the quintessential banking unit of Japan’s Mitsubishi UF J Financial Group (MUFG) and the fifth largest bank in the world by aggregate assets. Headquartered in Tokyo, the bank has a history of 360 years. Established in 1943, Banco Bradesco is Brazil’s one of the largest banks with headquarter in Osasco city, the Sao Paulo’s metropolitan territory.
Ripple is the FinTech startup from California and as of now is the driving specialists in the world of cross-border payments service and solutions. The platform connects global payment network, payment providers and banks to offer a frictionless experience during international transactions. These three global leaders in their respective fields are now coming together to launch the advanced cross-border service for payment.
Financial institutions that are now a part of the RippleNet platform process customer payments anywhere in the world instantly. It is a cost-viable as well as a highly dependable platform. According to MUFG, ”The relationship between MUFG Bank and Bradesco dates back to 1973 when an MUFG Bank predecessor bank invested in the Brazilian financial institution. The MOU is “an extension of an existing September 2017 joint effort assertion between MUFG Bank and Bradesco, and represents the banks’ most late business commitment.”
RippleNet settles transactions instantly slicing through messiness
At present, worldwide payments system is highly vital with banks and providers expanding their reach beyond countries and continents. That is why banks are always on the lookout for a platform or payment service that will allow them to develop different, custom transaction relationships. RippleNet has the ability to slice through all the messiness, recognize the ideal transaction routes and settle the payments instantly.