Ripple’s New Partner: CIMB Malaysia Join’s Ripple’s Cross-Border Payments

TL;DR

  • Malaysia based CIMB Group has announced a new partnership with Ripple.
  • The partnership will revolve around the use of Ripple’s xCurrent product, to improve and expand CIMB’s services in and beyond of ASEAN region.
  • However, this service agreement will not be using XRP cryptocurrency as of now.

Malaysia-based CIMB Group, which is one of the largest banking groups and money lenders in ASEAN (Association of Southeast Asian Nations) region, has just announced a new partnership with Ripple. The announcement states a strategic partnership between the parties while CIMB will get access to instant international payments, thanks to RippleNet.

Ripple and CIMB partner up

Ripple technology, in regards to cross-border payments, is sought after by numerous banks and financial institutions. Products like xCurrent and xRapid gained popularity lately as they allow nearly instant payment to be sent to any location where RippleNet exists.

Following CIMB’s new partnership, Ripple will add Malaysia to their growing list of countries. Simultaneously, CIMB Group will use Ripple technology in order to improve its SpeedSend service. This service is similar to Western Union’s, and it was launched in 2011.

However, while Ripple protocol is known for its association with its cryptocurrency XRP, its product xCurrent (which CIMB will be using) does not utilize the coin.

cimb_bank
CIMB Bank. Photo by Bloomberg

Payment services slowly approaching blockchain technology

The use of SpeedSend and similar services became quite popular due to their extended reach, quick service, and simplicity. CIMB will allow its customers to use this service to send money anywhere in Malaysia, as well as to all other locations where SpeedSend has a presence. Users will need to complete a simple form and present a verification ID in order to use the system.

CIMB Group’s CEO, Tengku Dato’ Sri Zafrul Aziz, had recently stated that the company is “delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths and capabilities.” According to Aziz, “this new solution will completely revolutionize cross-border payments and remittances, while it will also help to improve CIMB’s quick and cost-effective solutions.”

Ripple’s CEO, Brad Garlinghouse, commented by saying that banks and other financial institutions have already developed an interest in blockchain and different solutions that it offers. Due to blockchain technology, all payments are cheaper, more transparent, and a lot faster than they have ever been. While CIMB’s network and service already include around 800 branches in 15 countries, integrating Ripple’s blockchain will allow them to establish their presence even stronger, and provide the best solutions in the entire ASEAN region.

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Source: Crypto Potato