SBI Ripple Asia and SBI LY HOUR BANK PLC have obtained the necessary license from the Central Bank of Cambodia for money transfers using RippleNet.
RippleNet will facilitate faster, cheaper and more convenient money transfers between Cambodia and Vietnam.
SBI Ripple Asia Co., a joint venture between SBI Holdings and Ripple established back in 2016, is expanding its presence in Asia, according to the latest statement.
The company said that in cooperation with SBI LY Hour Bank, it will be able to provide Cambodia’s first international money transfer service using blockchain. The Company also confirmed that after successful trials, it has received the approval from the Central Bank of Cambodia.
Using RippleNet, the new partnership will facilitate faster, safer, and more convenient transfers of funds in the region. According to the announcement, RippleNet will offer very convenient real-time services with the lowest fees for international money transfers between Cambodia and Vietnam. In the past, Money transfer between these countries was a slow and expensive process that took two to three days.
RippleNet is a global payment network created by Ripple that allows institutions to offer companies and their customers fast, cheap and reliable payment solutions using blockchain technology and the XRP cryptocurrency.
SBI LY HOUR bank is a new bank that has achieved great success in the region. Having started as microfinance in 2012, the bank was granted a commercial banking license by the National Bank of Cambodia in March 2020. A year after its licensing, it enters into a partnership with financial services giants SBI Holdings to offer financial solutions for the region.
SBI LY HOUR Bank CEO Surng Ut said:
To have such low-cost real-time money transfers, the new service brings huge benefits to the people of Cambodia. Customers will be able to transfer money quickly through our banks. This connection allows customers who have an account on Bakong-a mobile payment system initiated by the National Bank of Cambodia-to instantly transfer funds to their account.
SBI Holding has already entered into a distributed ledger technology (DLT) agreement with commercial joint-stock bank Tien Phong (TP Bank), which will facilitate money transfers to Vietnam. The financial giant became a partner of the Vietnamese bank in August 2009 and currently owns 19.9% of the shares.