Mitsubishi UFG Bank Shares Ripple’s Advantages On Faster And Cheaper Transactions
Mitsubishi UFG is presently the fifth-largest bank that is functioning in the world, and they are one of the many entities singing the praises of Ripple. Ripple has taken the cryptocurrency world by storm, working as one of the most influential companies that deals with both blockchain and cryptocurrency. They are ranked as the third-most important crypto platform in the world, and it has helped many banks in the financial industry to learn more about DLTs and crypto.
Ripple is now a representative of Mitsubishi’s financial group, which largely seems to be due to the quick way that Ripple can handle transactions. While other platforms take up to several days to process transactions, Ripple can process the same blocks in seconds. The company previously used SWIFT as the technology to help them speed up their processes, but it looks like Ripple’s technology could take its place.
Steven Diep, who represented the Mitsubishi UFJ Financial Group, Inc. at a conference recently, said,
“Today, for many of us, we may have to go through SWIFT and encounter charges; many intermediary banks are part of that, and typically an SLA for fund transfer or movement is between one and three days. Using technology such as Ripple, we can get that done to something like 30 seconds, which is significantly different and at a cheaper cost as well in terms of moving money between our branches, between our different countries within our network. That’s really important to us.”
Even as Diep has been considering this option, he said that Mitsubishi UFG is the most impressed with Ripple lately. Though they are “not the only one” that the bank is considering, they say that Ripple is the “one that works.” This group has been the leading company with Ripple’s implementation, and the proof is easily found in the practical use cases.
Mitsubishi is also the owner of 75% of Krungsri Bank, which they have used to test out the payment processing from Ripple. Diep wrapped up the discussion discussing the positive influence that Ripple has had on the crypto work, and how that gives them an optimistic view of how Ripple will work with their payment system. Ripple has even reduced the liquidity costs to the company so far.
“Just in May, Krungsri revealed a successful pilot test with Mitsubishi Corporation, one of our customers, between Mitsubishi UFG bank and Standard Chartered moving funds from Bangkok to Singapore very successfully. We did this under Thailand’s regulatory sandbox … We are still in trial stages, but our interest is absolutely to build this toward something real that we can use within our group.”