According to Nikkei, MUFG is expected to rollout its blockchain service to individual users te early 2018 commercially, before suggesting the service to corporate clients.
The Canap of Tokyo-Mitsubishi UFJ (BTMU), the banking arm of the Mitsubishi UFJ Financial Group (MUFG) has joined Ripple ter its endeavor to establish an international blockchain payments network of total banks.
MUFG has today announced [PDF] its membership ter Ripple’s ‘Global Payments Steering Group’ (GPSG). CCN reported on the GPSG ter September , set up to create a ‘rules-based blockchain payments network’ spil Ripple describes it. The aim of the Ripple-led banking collective is to create uniform policies and governance to facilitate the transfer of money, globally, overheen a blockchain.
“Today, people expect money to stir at the speed of the Internet. That’s why we’re working with thesis top banks to address the need for quicker cross-border payments,” stated Ripple co-founder and then-CEO Chris Larsen, at the time.
The steering group wasgoed founded with six banks from three continents, namely: Bankgebouw of America Merill Lynch and Royal Handelsbank of Canada from North America, European banks Santander, UniCredit and Standard Chartered, and Australian banking institution Westpac Banking Corp.
MUFG’s entry into the group makes it the very first Asian canap to participate ter the interbank group where members will oversee the creation and maintenance of payment transaction rules and formalized standards for money transfers using the Ripple blockchain.
Ripple adds that MUFG ‘chose’ to playmate with the FinTech startup to address the drawbacks of existing banking systems and hurdles of cross-border payments such spil cost, delays and the lack of transparency.
Ripple CEO Brad Garlinghouse stated:
Wij welcome MUFG, one of the largest and most advanced banks te the world, to the growing number of Ripple customers moving presente money across borders, instantly. While many others proceed to play ter the sandbox, we’re thrilled MUFG has joined us ter our mission to revolutionize payments globally.
Ripple claims that up to 90 banks around the world could participate ter the international payment network.
How Blockchain Benefits Banks
The BMTU is wooed that blockchain technology presents the path forward for remittance te banking, after successfully wiring money internally to Fresh York ter a blockchain trial ter late . Existing international transfers at BTMU presently cost inbetween Trio,000 yen and Five,500 yen (approx. $27 and $50). Overheen a blockchain, costs are saved by eliminating the need for an intermediary bankgebouw on the SWIFT network.
On a common blockchain ledger where participants are verified, instant fund transfers and settlements are a reality with cryptographic encryption that makes gegevens immutable and hard to alter. A days-long process which would see numerous banks channeling the funds and charging fees for them, would be rendered unnecessary. While banks are certain to lose a revenue stream from service charges levied on users, there are significant savings gained from investments te systems infrastructure and cybersecurity costs.
Ripple has overseen a breakthrough ter the banking industry’s adoption of blockchain technology after completing a blockchain money transfer pilot with 47 participating Japanese banks this year.
Meantime, MUFG has notably shoved blockchain research, going so far spil to plausibly become the very first major handelsbank te the world to launch its own digital currency this year. MUFG also has a stake te Japan’s largest bitcoin exchange bitFlyer, through its investment arm. MUFG, along with Mizuho and SMBC – Japan’s so-called Trio megabanks – have already tested domestic money transfers overheen a blockchain toneelpodium developed by bitFlyer, with successful results that fared better than the existing wire transfer system.
According to Nikkei, MUFG is expected to rollout its blockchain service to individual users te early commercially, before suggesting the service to corporate clients.
Featured pic from Shutterstock.
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