United Arab Emirates-based retail and business bank, RAKBank, is expanding its remittance routes using Ripple’s blockchain technology.
Ripple, which provides distributed ledger payments products for financial institutions, was selected to help the UAE’s ninth largest bank provide quick cross-border payments in a new Bangladeshi corridor.
A partnership, announced Sunday, between Bangladesh-based Bank Asia and RAKBank will allow users to transfer money between accounts at the two institutions within 24 hours, RAKBank said.
RippleNet’s blockchain technology has been integrated with the bank’s own RAKMoneyTransfer service for the initiative. RippleNet is a global payments network with now over 300 members that seeks to tap into payments markets by acting as a bridge between separate institutions and currencies.
The announcement doesn’t specify whether the service utilizes XRP, the cryptocurrency that is closely associated with Ripple and is an option for RippleNet users.
“This new instant remittance solution to Bangladesh will be free during these difficult times, and customers can send money to their families back home quickly,” the bank said in a statement, referring to the ongoing coronavirus pandemic. The service is free for users until June 30.
RAKBank CEO Peter England said the offering is aimed to bring “peace of mind” to the Bangladeshi expatriate community amid the challenges posed by COVID-19, providing them with a “comprehensive remittance solution.”
“This solution empowers the Bangladeshi expats to instantly and securely send money back home to Bangladesh in just a few simple clicks,” England said.