Japan’s second-biggest banking institution has teamed up with SBI Holdings to develop a financial service platform that will be based on blockchain, Japanese based Nikkei reports.
Sumitomo Mitsui Banking Corporation (SMBC) is set to deposit money in Japanese financial conglomerate in efforts to enhance the utilization of distributed ledger technology (DLT) within the trade finance field as well as personal bank remittances.
The partnership documents show that the Japanese financial giant agreed to invest in MoneyTap, the payments platform powered by blockchain technology. The partnership comes just weeks after Fukushima Bank, as well as various regional banks, integrated the app to their operations.
Ripple in collaboration with SBI Holdings developed MoneyTap. The app using DLT enables its users to send money with the help of their telephone numbers or using generated QR codes. While the app is powered by Ripple technology, it is yet to reveal whether users can use XRP, the network’s native token.
Sumitomo Mitsui Banking Corporation (SMBC) and SBI Holdings are members of a banking consortium which forms SBI Ripple Asia that was formed to advocate the use of Ripple’s technology within Asia. The consortium brings together 47 banks which boast of 80% control of the Japanese banking assets.
SMBC is also investing in Marco Polo’s R3 Corda that is also supported by the SBI Holding. This investment is set to enhance the adoption of Corda within Japan and beyond. Corda is a blockchain platform that allows companies and developers to develop applications on top of it. About 300 companies have used the platform for different purposes.
Ripple SBI Asia has witnessed rapid growth and development since it was formed. The firm together with Visa has invested in Currencycloud.
Ripple and SBI Holdings agreed to form a joint blockchain venture in January last year with an aim of revolutionizing the finance sector in Japan and the region.