SBI Holdings, a Japanese company with major bank subsidiaries including SBI Securities, SBI FXTRADE and SBI Virtual Currencies, has received the go-ahead from the Japanese regulatory authorities to continue their partnership with Ripple, based in the United States, in order to launch a new joint venture called SBI Ripple Asia.
The new approved company has been running since 2017, when SBI and Ripple started talking to launch Ripple-based products, including the launch of the MoneyTap app. The Japanese regulators granted the two companies permission to process, manage and transmit digital payments as an official "electronic settlement agency service provider".
The approval comes while Japan has tightened its legislation on e-payment technology companies and fintech, introducing new legislation that requires companies wishing to introduce electronic payment technologies (such as MoneyTap) to get approval from FSA before publicly launching these products.
The SBI and Ripple joint venture will allow users to send fast peer-to-peer payments using Ripple's capillary accounting technology to facilitate payments.
SBI has announced regulatory approval on its site, with a rough translation from the Japanese reading:
"SBI Ripple Asia Co., Ltd. has completed registration as a replacement agent for electronic settlement … SBI Ripple Asia is a remittance application for smartphones (Money Tap), which connects to the financial infrastructure next generation using Distributed Ledger (DLT) technology to the "Centralized internal and external exchange consortium" to create an environment that allows depositors to transfer money between individuals quickly, safely and comfortably. the development of financial institutions participating in this consortium, we have made it possible to make connections using the open APIs. "
How the increase in chain partnerships could affect XRP
MoneyTap is one of the results of the relationship between SBI and Ripple and is coming when investors are becoming more and more eager to find cases of use for XRP, the cryptocurrency largely intertwined with Ripple Labs.
Recently, XRP has seen an increase in meteoric prices compared to the rest of cryptocurrency markets, mainly due to the expansion of XRP use cases, including Ripple's xRapid product, which will likely increase liquidity and trade volume. of XRP if widely used by the companies that are currently processing it.
In addition to xRapid, another upcoming product from the startup blockchain Coil, it uses XRP to facilitate micro-payments for Internet content including articles, videos, music and more.
If widely adopted, Coil and xRapid could demonstrate to investors that XRP is practical to facilitate both large and small transactions, which could significantly increase investor confidence in the cryptocurrency that is currently being criticized for being a "bankers' currency" that offers nothing it is not offered by Bitcoin or other encrypted competitors.
The news regarding XRP has led to temporarily exceeding the market capitalization of Ethereum on a few occasions in the last two weeks. It is currently ranked third in the global market capitalization.
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