Malaysian commercial bank CIMB has teamed up with California-based technology company Ripple Labs to integrate Ripple’s blockchain-based cross-border payments service.
As Ripple explained on Wednesday, the strategic collaboration was inked to offer Ripple’s cross-border payments solution to the CIMB market, in an effort to meet the need for “speedy and cost-efficient international payments” across the Association of Southeast Asian Nations (ASEAN).
According to the CIMB, the integration of Ripple’s blockchain-based payments platform was initiated as part of the bank’s expansion of its proprietary remittance system, SpeedSend. Currently, RippleNet has already been deployed across several jurisdictions, including the U.K., U.S., Australia, and Hong Kong.
The collaboration will also involve extending Ripple’s payments solution across the group, to be applied to other use cases, the bank added. According to the bank’s website, CIMB’s remittance platform already serves several Asian markets, including Japan, Thailand, India, Singapore, and the Philippines.
As Ripple’s CEO Brad Garlinghouse stated:
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience.”
While Ripple provides a suite of payments platform, it did not disclose which specific payments solution was being integrated into CIMB’s remittance system.
As estimated by the World Bank, the remittance volume across Southeast Asia is expected to reach up to $120 billion by the end of the year, while remittances across the globe are projected to inflate by as much as $642 billion.