- SBI Remit enters a strategic partnership with Hamamatsu Iwata Credit Bank
- The partnership will create a broader use for XRP-based remittance
- XRP market impact has yet to materialize, if ever
The value of crypto assets can fluctuate wildly in either direction. External factors play a crucial role in these proceedings, including announcements, partnerships, etc. For Ripple’s XRP, there may be a price rally on the horizon after the latest partnership news is coming out of Japan.
A Big Partnership For SBI Remit
As one of the leading financial institutions leveraging Ripple, XRP, and the underpinning technology, SBI Holdings plays a crucial role in this ecosystem. Its subsidiary, SBI Remit Co. Ltd, is entering a new partnership with Hamamatsu Iwata Credit Bank. This business alliance agreement will see Hamamatsu Iwata Credit bank handle SBI Remit’s international remittance services. The new service will go into effect come July 21, 2021.
Foreign workers have become indispensable in the Japanese economy, so much so that they may compensate for local labor shortages.
Although there are current restrictions in place for foreign workers, those are expected to be relaxed in the coming months. However, the importance of international remittance will likely increase over the coming months and possibly years. Therefore, making these money flows as efficient and affordable as possible is of the utmost importance, per the announcement.
As SBI Remit relies on Ripple’s distributed ledger technology powered by XRP to achieve speed and low fees, having a partner handle these flows becomes crucial.
Hamamatsu Iwata Credit Bank positions itself as a leader in solving societal issues of domestic and foreign workers. As local companies in the Shizuoka Prefecture are likely to hire more workers soon, more people will be looking to send money back home to their families.
A mutual utilization of networks provided by SBI Remit’s XRP-powered solution and Hamamatsu Iwata Credit Bank’s ecosystem can lead to more convenient international remittance services.
Moreover, it will give both parties a chance to explore new sales channels in regions that may have remained inaccessible otherwise. Finally, the use of Ripple’s XRP Ledger allows for global growth, something that benefits all parties in this equation.
Will It Impact XRP?
In theory, this news will please the many XRP holders and speculators globally.
Having the asset gain more widespread usage can drive demand higher, although it doesn’t necessarily have to. Partners such as SBI Remit buy XRP from Ripple directly whenever the company unlocks its escrowed contracts. There will be no extra market demand right away unless purchases for significant amounts of XRP were to be made.
Even though Ripple’s asset has noted some minor recovery lately, it seems things are turning bearish once again. A net 5.86% loss on the day is not necessarily problematic, yet it seems to confirm the supply vastly outweighs the demand. It is unclear if the market will move up or down from this level. The recent news by SBI Remit has not made a meaningful impact yet, yet there is no guarantee it ever will.
For most projects, announcements such as the one involving SBI Remit can trigger immediate market action. Ripple’s XRP, on the other hand, has far too much liquidity to notice any real changes from such developments. More specifically, the increasing use of the XRP Ledger does not trigger more demand for Ripple’s asset as long as partners can buy from the parent company directly.