Major corporations around the world are paying close attention to blockchain technology. Especially Ripple’s network is of great interest among Asian firms. Mitsubishi Corporation, together with a few partners, are planning to move real funds over RippleNet. This is another validation of Ripple’s existing technology, which is being trialed by various payment service providers.
Mitsubishi Eyes the Blockchain
Most people are familiar with the Mitsubishi name as a car manufacturer. The parent corporation, however, as bigger plans for the future. Together with MUFG Bank, Bank of Ayudhya, and Standard Chartered Bank, a blockchain trial has been planned. More specifically this venture focuses on RippleNet, the technology designed to facilitate cross-border payment flows.
The main purpose of this trial is to improve cash management. All parties involved deal with real-time and multi-currency payments on a daily basis. Even so, cross-border transactions remain slow, expensive, and subject to a fair amount of administration. With RippleNet, these payment flows can be improved upon significantly. Ripple officials comment on this trial by stating:
“The goal of the pilot is to demonstrate the commercial viability of delivering high-speed cross-border payments between independent banks. As global trade continues to increase, the problems associated with cross-border payments are being experienced by smaller businesses as well. These companies don’t have the treasury resources or experience in navigating the pitfalls of today’s payment rails.”
Another Big Test for RippleNet
It is not the first time Ripple’s technology is being put to the test. RippleNet is a growing venture which mainly collected support in the Asian region. Given this region’s position in the remittance world, it is normal new solutions need to be found to improve existing services. Additional tests on this scale will determine whether or not RippleNet is indeed a viable addition to the financial sector.
The trial in question will be carried out by Mitsubishi Corporation. Its subsidiaries’ accounts in Thailand and Singapore will see a real-world money transfer using RippleNet. It is also the first time a Japanese firm completes a cross-border payment transaction using Ripple’s technology. If successful, this test can set a big precedent for other domestic firms to explore.
Depending on how the pilot goes, the parties involved seek to commercialize this payment solution. Bringing RippleNet to the real world is an ongoing struggle, albeit things are proceeding as planned. With all of these firms showing a genuine interest in the project, Ripple has to deliver the goods. Having Mitsubishi Corporation, among others, on board at this stage certainly paints an interesting outlook.
Image from Shutterstock