The Bank of Tokyo-Mitsubishi UFJ (BTMU), the banking arm of the Mitsubishi UFJ Financial Group (MUFG), has worked with Ripple on the launch of an inte
The Bank of Tokyo-Mitsubishi UFJ (BTMU), the banking arm of the Mitsubishi UFJ Financial Group (MUFG), has worked with Ripple on the launch of an international blockchain payments network of global banks.
On March 31 2017, MUFG has announced its decision to join the Global Payments Steering Group (GPSG), Ripple`s interbank group for global payments.
The goal of the project is to crate uniform policies and governance that will enable the transfer of money, on a global scale, over a blockchain.
“We welcome MUFG, one of the largest and most advanced banks in the world, to the growing number of Ripple customers moving actual money across borders, instantly. While many others continue to play in the sandbox, we’re thrilled MUFG has joined us in our mission to revolutionize payments globally.”, said the CEO of Ripple Brad Garlinghouse.
How banks can benefit from the Blockchain?
Immediate fund transfers and settlements are easy to perform on a common blockchain ledger, where participants are verified, explained cryptocoinnews.com. Also, cryptographic encryption makes data immutable and hard to alter.
BMTU has successfully wired money internationally to New York in a blockchain trial in late 2016. According to information published on cryptocoinnews.com, existing BTMU international money transfers cost between 3,000 yen and 5,500 yen (approximately $27 and $50). The blockchain technology saves these costs as it eliminates the need for an intermediary bank on the SWIFT network.
In the beginning of March, 47 Japanese banks completed a money transfer pilot that used Ripple-powered cloud payments platform RC cloud, as cryptocoinnews.com noted at the time.
MUFG has experimented on the rumored “MUFJ Coin”, a digital currency that may be the first issued by a bank.
BTMU is the first Japanese bank to offer concrete timetable for a rollout of its blockchain-based money transfer service, as Nikkei (asia.nikkei.com) observed.
The bank is expected to offer the service to individuals in early 2018 and then to expand it to corporate clients.