Vietnam’s Orient Commercial Joint Stock Bank makes news after its incorporation RippleNet as a strategic partner on October 16.
Phong Nguyen, OCB CFO, described the strategic partnership as a result of a “10-month effort to mobilize resources from multiple divisions and aggressively explore business use cases.”
According to Nguyen, Ripple’s technology will reduce the expenses and fees involved in remittances and cross-border payments, while increasing productivity and transparency.
However, it should be noted that at the time of this writing, both OCB and Ripple had yet to officially announce the same thing via a press release.
OCB is based in Ho Chi Minh City and is one of the largest banks in Vietnam with $ 4.6 billion AUM and more than 130 branches across the country.
Interestingly, it is the second bank to join Ripple, after TPBank It did so in 2019 and was able to increase the speed of its remittances to a few minutes instead of a few hours.
RippleNet is Ripple’s on-demand liquidity product that uses XRP to link two currencies, making it easy to make cross-border payments in as little as three seconds. Then has a global payment network of more than 200 financial institutions and facilitates payments in more than 40 currencies. In fact, according to recent reports, 20% of RippleNet transactions are done using XRP.
However, it should be noted that cryptocurrency is still illegal in Vietnam and as such TPBank is likely to use Ripple’s xCurrent which facilitates cross-border payments using the Interledger protocol and not xRapid which is used by the XRP Ledger. It is fair to assume that the OCB would do the same.
Anterior ripple associations With companies like SBI Remit and Michinoku Bank they have led many to speculate on the existence of a corridor between Japan and Vietnam, one that has yet to be officially announced. While Japan grants legal status to the use of cryptocurrencies within the country, the same cannot be said for Vietnam at the moment.
Vietnam’s remittance market has grown 23.6% year-over-year and is expected to reach $ 51 million in 2024. If more banks in the region adopt this technology and regulations become more favorable in the region, there is reasons to believe that Vietnam will be an important, strategic region for payments in the future.
Speaking of Ripple, the company revealed several updates to its On-Demand Liquidity platform at the recent Swell conference.
CEO de Ripple Brad Garlinghouse revealed that in the 3 years since RippleNet has been active, more than 2 million transactions with a face value of $ 7 billion have been made.
The company sees great potential in the Asia Pacific region, and Garlinghouse goes on to say:
“We are seeing the most traction in Asia… Now it is also clear that our clients are increasingly interested in emerging markets.”
This is a machine translation of our English version.
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