South Korean Bank Hopes to Commercialize Ripple for Remittances

The South Korean Bank Woori Bank just had a successful test transaction by its Digital Strategy Department involving Ripple. The initial tests were conducted back in January. After the success, the current motive of the bank is to introduce a Ripple’s technology to its worldwide remittances.

In accordance with local news source ChosunBiz, Woori Bank is planning to use Ripple, which is a cryptocurrency powered remittance network, and create a “commercialized” international remittance. This will mark the second phase of the trial.

Woori Official said to ChosunBiz, “Since the test results were good, there are many banks to be commercialized in Japan.”[…]“Several banks, such as two or three megabanks and Internet professional banks, are pushing to introduce the practice.”

On the latter note, 60 other institutions, the majority of them being Japanese banks, are also a part of these trial. The trail came about as a part of a Japan-based scheme involving Ripple and Japan’s SBI Group. South Korea’s Second Largest bank Shinhan is also participating in piloting this DLT(distributed ledger technology) payments system developed by Ripple.

The SBI Ripple Asia, the joint venture between Ripple and Japan’s SBI group, pointed out last year in September that they would begin testing Ripple with cross-border remittances with the help of Japanese and South Korean banks. The purpose of this testing us to make DLT a real-life alternative and make cross-border transactions for banks more efficient and affordable by cutting out the middleman.

According to the statement published by SBI Ripple Asia in September, along with sources from ChosunBiz, we currently know that Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, as well as Thailand’s Siam Commercial Bank, are all involved in the trial.

Also according to Ripple, the Western Union is also looking to leverage the technology for the same purpose of time-efficiency and lowered costs for cross-border transfers. Overall, it is yet another successful month for Ripple albeit their cryptocurrency XRP is losing some value.

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