Japan and Brazil are the target of a new cryptocurrency-based remittance service based on Ripple.
Japanese and Financial Services Holding Company Mitsubishi UFJ Financial Group, Inc. (MUFG) said it will use Ripple (XRP) to create a new cross-border payments service to Brazil in a November press release. 9.
MUFG, which has shown growing interest in cryptocurrency products, will partner with Banco Bradesco of Brazil to create the platform through its local subsidiary Banco MUFG Brazil.
Confirming that the two parties had signed a memorandum of Understanding (MoU), MUFG reiterated its faith in Ripple’s technology, after joining its global payments steering group in March last year.
“The new payment system […] will assist banks as they work to market a high-speed, transparent and traceable cross-border payment solution between Japan and Brazil, ” the press release states.
MUFG and Bradesco had previously worked together on initiatives dating back to the 1970s, the release adds, without giving a timeframe in which the Ripple product should launch.
Japan has increased its consumer-oriented payment services more generally this year, as labor shortages see opportunities for migrant workers increase.
In June, a separate initiative involving the Philippines ‘ RIZAL COMMERCIAL Banking Corp sought to test blockchain remittances using IBM technology.
Meanwhile, Ripple is currently the subject of multiple remittance plans by banks in Japan and elsewhere.