Friday, 26 April 2024
Cross-Border payment pilot test using next generation technology
Mitsubishi Corporation, MUFG Bank, Ltd., Bank of Ayudhya PCL, a Thailand-based subsidiary of MUFG Bank, and Standard Chartered Bank, jointly announced the commencement of a pilot test for moving real funds over RippleNet, with the objective of making cross-border payments more convenient and further improving the capital efficiency of corporate groups.
This pilot test will be carried out by MC between the accounts of MC’s subsidiaries in Thailand and Singapore, under the Bank of Thailand Regulatory Sandbox Framework. It is the first time for a Japanese company to conduct cross-border payments over RippleNet.
Based on the results of this pilot test, the companies will work towards commercializing this high-speed, transparent and traceable cross-border payments solution and collaborate on a variety of innovative projects.
MC, MUFG Bank, Krungsri and Standard Chartered have been working together to improve financial efficiency internally using next generation technologies. This pilot test is the first result of a joint project between the companies to improve cash management with a real-time, multi-currency, multiple-bank platform.
Sending bank is the Bank of Ayudhya head-office, a subsidiary of MUFG Bank. The sender is Thailand-based MC Company Limited, with Standard Chartered Bank Singapore as the receiving bank and Singapore-based MC Finance & Consulting Asia Pte Ltd. as the recipient. The transactions will use the Singapore dollar as a currency.
Ripple is a system software vendor established in 2012 in San Francisco. The cross-border payment software developed by Ripple uses Interledger Protocol, an internet protocol which provides pre- and post-settlement messaging function, and allows for the real-time settlement and delivery of funds. Financial institutions with this software can transact between each other across the network, RippleNet.
Since 2015, Ripple and an advisory team made up of a diverse set of leading transaction bankers?including Standard Chartered and MUFG Bank, have been building the Rulebook, a common framework that ensures operational consistency and legal clarity for every transaction. This group actively advises on maintaining and enhancing the rules and standards.
Re-disseminated by The Asian Banker
