Ripple (XRP), the third largest cryptocurrency by market cap, has received another tailwind of positive news in the form of adoption by one of the high profile banks in the Middle East, Kuwait House of Finance. The bank said that it would use Ripple’s technology to process international payments for its customers. The bank said in a tweet:
“KHF has started operating an instant cross-border remittance service using Ripple’s blockchain technology. The zero fees, “Instant International Transfer” service is available now in Saudi Riyal SAR where customers can make remittance transactions to beneficiaries at Al Rajhi Bank.”
Details of the partnership are currently scarce, and it remains to be seen whether the Islamic Bank uses Ripple xCurrent or xRapid. Both xCurrent and xRapid were developed by Ripple to lower the cost and improve the speed of cross-border payments. They are based on blockchain – the technology that underpins Bitcoin and many other cryptocurrencies.
Kuwait House of Finance is now one of the world’s financial giants using Ripple as an alternative to SWIFT. While at the blockchain Expo – earlier this year – SWIFT maintained its cross-border settlements are also instant, and that banks are to blame for delays. According to them, some banks sit on incoming cash for days before crediting the funds to clients’ accounts.
Over 100 banks have adopted Ripple
The news is the latest in a string of high profile announcements and adoption for Ripple (XRP). On Wednesday, September 19, the California-based blockchain startup announced that PNC, one of the top 10 biggest banks in the US, had embraced Ripple blockchain to streamline payments in and out of the US.
Other major banks that have joined RippleNet include the SBI-led Japan bank consortium, American Express, Banco Santander, among many other leading banks in the world. At the time of writing, over 100 financial institutions in more than 40 countries across all continents have reportedly joined RippleNet.