Novatti Group, a partner of Ripple’s On-Demand Liquidity (ODL), has obtained a banking license for its subsidiary firm International Bank of Australia (IBoA).
Following years of delay, the Australian Prudential Regulation Authority (APRA) has granted a banking license to Novatti’s subsidiary firm International Bank of Australia Pty Limited, as revealed by the agency in an official press release Thursday.
According to the press release, IBoA now has full regulatory backing from APRA to function as a restricted authorized deposit-taking institution. This gives the Novatti subsidiary the liberty to operate as a recognized financial institution engaged in taking deposits, essentially operating as a bank.
Additionally, APRA approved the IBOA Group Holdings Pty Limited company as a non-operating holding company, according to provisions of the Australian Banking Act of 1959. Accordingly, IBoA has been integrated into APRA’s list of approved deposit-taking institutions.
Established as a subsidiary of Novatti, IBoA introduces a hybrid business model which incorporates cross-border settlements, borderless banking, payment services to FinTechs, SMB banking, and cross-border lending, among other offerings. IBoA’s mode of operation could utilize Ripple’s ODL solution due to the partnership between Novatti and Ripple.
Novatti Group formed a significant business partnership with Ripple in December 2020 to leverage RippleNET’s ODL solution in facilitating transnational payments. Novatti sought to target the Australian and Southeast Asian markets at the initial stage of the partnership.
Last year, Ripple highlighted the importance of its partnership with Novatti, pointing out how the firm has utilized its ODL solution and what comes next.
The Ripple community admired the development.
Finally, @Ripple partner @NovattiPayments has acquired a banking license from APRA for its subsidiary International Bank of Australia. They've been trying to get this for years. Huge!https://t.co/syr7ZlqdP3
— Andrew Berthold (@andrewberthold) November 4, 2022
Big stuff! #Ripple partner Novatti how has a banking license! Thanks @andrewberthold https://t.co/QdFjf6tfLm
— WrathofKahneman (@WKahneman) November 4, 2022
Ripple has provided several financial institutions with an efficient and fast cross-border payment solution in ODL. Ripple’s ODL solution has not been restricted by international borders, as the firm appears to have penetrated numerous markets across different continents. The Crypto Basic recently reported Ripple’s growing impact on the crypto scene in the Middle East and North Africa (MENA).