The National Bank of Kuwait makes a Cross-Border Ripple-Based Payment Method

Last Modified:25 Oct 2020 00:46:19
The National Bank of Kuwait makes a Cross-Border Ripple-Based Payment Method

According to the news published on December 27th, the National Bank of Kuwait, NBK, makes a cross-border remittance product based on RippleNet Blockchain technology. NBK was launched in 1952 and is the greatest institution in terms of an asset. The 2017 annual report shows that NBK owns more than $86.3 billion. NBK institution is the first financial institution in Kuwait willing to make remittance product. This product which is called NBK Direct Remit has been made for international payments which are based on RippleNet Blockchain technology. Through this program, international transfers can be accelerated.

What is Ripple?

Ripple was founded in 2012 and created its own cryptocurrency, i.e., XRP. This cryptocurrency is now one of the oldest ones in the digital currency world. After Bitcoin and Ethereum, it is ranked in the third place, and sometimes it takes the second level of the most valuable cryptocurrencies. The Ripple’s benefit compared to Bitcoin is its simplicity. Opposite to Bitcoin which doesn’t have a simple mechanism, Ripple has a clear structure, so it is suitable for international transactions.

Dimitrios Kokocioulis, the deputy CEO of group operations and technology, said that this Blockchain-based solution allows the customers to do their transactions every time of the day in a few seconds. Moreover, this service is active in Jordan and will be activated in the other countries in the near future.

In November, CIMB Group Holdings Bhd joined RippleNet. CIMB will complete its product, XCurrent, which is a software to facilitate international payments for the SpeedSend financial product. Furthermore, in that month, Japanese Bank and Mitsubishi UFJ Financial Group told that they would use Ripple to create a new remittance service with the cooperation of Banco Bradesco. The objective of this product is helping banks to make a quick and transparent cross-border payment service between Japan and Brazil. In October, Ripple launched its real-time platform called XRapid for promotion purposes. XRapid is a platform to accelerate international payments. This platform doesn’t need pre-funded Nostro accounts. Nostro accounts are made by foreign currency, and they are not domestic. Blockchain has made currency transfer services very fast and easy, and Ripple is a good alternative to create such platforms.