Big Banks In Japan Partner With Ripple, Here's Why!

Big banks in Japan partner with Ripple (Photo; Doc. Simblockchain)

JAKARTA - Ripple, has demonstrated its potential in changing the global banking landscape. A recent study conducted by industry experts, Dr. Hossein Hassani, Xu Huang, and Emmanuel Silva, revealed that about 80% of banks in Japan have partnered with Ripple, marking a major milestone in the convergence between blockchain and traditional finance (TradFi).

The influence of Ripple in Japan, a country known for its cautious approach to new technologies, has grown at an unprecedented pace. More than 60 banks have integrated into Ripple, demonstrating a significant shift towards the adoption of cutting-edge financial technology. This partnership allows banks in Japan to offer faster and more reliable international payment services, increasing customer efficiency and satisfaction.

One example of a prominent partnership is between Ripple and SBI Holdings, which led to the formation of SBI Ripple Asia. The joint venture aims to change cross-border payments in the Asia-Pacific region, with SBI Holdings promoting Ripple's On-Demand Liquidity (ODL) products utilizing XRP.

Despite facing legal challenges with the US SEC, Ripple continues to expand its local and international partnerships. Major banks such as Santander, CIBC, Mahindra Bank Box, and Ita total Unibanco have integrated Ripple technology, changing the way they make cross-border transactions.

According to CoinSpeller information, the first quarter of XRPL 2024 report showed a 37% jump in active user count and a 113% increase in transactions compared to the previous year, confirming Ripple's growing adoption.

Ripple offers fast cross-border transactions at minimal cost, with XRP Ledger completing transactions in seconds. This is a significant contrast to traditional banking processing times. With low transaction fees and energy efficient models, Ripple provides an opportunity for banks to simplify operations and reduce costs. Network scalability that can handle up to 3,400 transactions per second guarantees reliability even during peak demand.

Outside of TradFi, Ripple also plans to explore institutional decentralized finance (DeFi), with the aim of integrating DeFi protocols into TradFi institutions. This will trigger a financial revolution that combines DeFi's advantages with regulatory compliance and customer safety measures from TradFi.