Ripple (XRP) has partnered with India’s Kotak Mahindra Bank to improve access to the country by enabling faster and cheaper remittance payments. Kotak joins other banks such as Standard Chartered which have already implemented Ripple’s network to enhance their cross border transactions and capture new markets. Just recently, Standard Chartered partnered with Philippine based Gcash and Hongkong based Alipay to provide quick remittances between the countries by leveraging Ripple’s XRP ledger.
The two countries have traditionally had low liquidity between their currency pairs making it difficult and expensive to transact between them. However, through XRP, financial institutions are able to facilitate transactions between such currencies opening up new markets and highly improving efficiency in already existing markets.
India has over 80% of its adult population having bank accounts and the country has consistently led in terms of remittances received over the past few years. In 2017 alone, over USD 69 billion was remitted into the country. This market creates a great opportunity for Ripple and in 2017, the blockchain network established offices in India to facilitate partnerships with financial institutions in order to improve access to financial services through RippleNET, a decentralized network which enables payment providers and banks to connect to each other through the XRP ledger.
Kotak will use Ripple (XRP) software, xCurrent to enable spontaneous remittance payments into India, joining other regional banks such as Axis Bank and IndusInd which are already connected to the Ripple network.
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SBI, a financial giant and XRP partner launched VCTRADE its crypto exchange platform earlier this month with focus on trading Ripple’s XRP coins. The platform offers fast transactions at zero fees and is but is expected to charge a small fee in the near future for withdrawals. At this week’s Japanese Blockchain Conference held in Tokyo, Kitao, the Chief executive of SBI remarked that they intended to take blockchain technology beyond financial services and into other sectors of the economy.
While attributing the high volatility experienced in the cryptocurrency industry to speculative forces in the market, Kitao warned that it was important for individuals to think about the real life uses if these technologies and how they work to improve businesses in order to create a more stable and efficient ecosystem. According to Kitao, the use of blockchains will be widespread in the near future with Ripple acting as the global standard for the application of this technology.
Ripple’s xCurrent software and XRP ledger provide an avenue for financial institutions to stream line their services for faster and cheaper cross border transactions. The 3rd ranked cryptocurrency boosts a market capitalization of USD 18 billion and is currently trading at USD 0.46, a slight increase of less than 1% from its opening price today.
Ripple (XRP) has been on a downward trend since June 4th when it hit a high of USD 27 billion in market capitalization to close at a low of USD 17.88 billion yesterday. The Ripple network however remains one of the most promising public blockchain networks with businesses and financial institutions continuing to leverage its services, directly or indirectly through other businesses that offer customized financial services based on the XRP ledger.