In an official press release issued by the MUFG on November 9, 2018, the financial giant announced the signing of a memorandum of understanding to develop a new cross-border payment service as part of a joint effort between MUFG and Bradesco.
The Brazilian branch of the largest bank in Japan has signed an agreement with Banco Bradesco, a leading global bank in Latin America, with the intention of creating a platform that allows money transfers directly and without intermediaries through a secure, economic protocol it's fast.
According to MUFG, both sides believe that Ripple Inc, the creator of XRP, is the best option to bring the project to life:
"Through this MOU, MUFG Bank has decided to initiate collaborative development for cross-border payments between Japan and Brazil, using Ripple's cutting-edge technology.The new payment system – developed by Ripple, a software vendor based in San Francisco – will help banks work to market a high-speed, transparent and traceable cross-border payment solution between Japan and Brazil. "
With this new agreement, Ripple continues to consolidate its position as a leading company in the financial services market. Since the release of xRapid a few weeks ago, the evaluation of the company and its public image has improved steadily.
MUFG: Deeply interested in Ripple
MUFG had already spoken publicly about his interest in Ripple's blockchain project. In a conference published in September by Steven Diep, a bank representative commented how Ripple could provide more satisfactory results than those traditionally obtained using the SWIFT messaging system:
"Today, for many of us, we may have to go through SWIFT and run into accusations, many intermediate banks are part of this and generally an SLA for transferring or moving funds is between one and three days.
Using a technology like Ripple, we can get this result for something like 30 seconds, which is significantly different and at a cheaper cost, in terms of transferring money between our subsidiaries, between our different countries within our network. This is very important to us. "
– Steven Diep (@DiepSanh) 3 September 2018
During the last days, the adoption of Ripple's technological solutions has allowed its Token XRP to have a bullish streak that has led it to overcome the market capitalization of Ethereum, albeit for short periods of time.
Recently there have been many speculations about a possible partnership between Ripple and SWIFT itself; however, it seems that SWIFT is more interested in competing than in collaborating and the team is focusing on developing a proprietary blockchain.
It is not easy to predict when the use of this platform will be implemented, but the Memorandum of Understanding lays the groundwork for a possible future collaboration between the two financial institutions.