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.
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.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
Polygon (MATIC) rebounded from a significant support line at $0.3 on June 19 and has rallied 52% since then....
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.