- About a third of the world’s 100 largest banks in terms of assets have tested or are already using Ripple’s cross-border payment technology.
- The fifth largest bank in the world, Mitsubishi UFJ Financial Group, is an official Ripple partner and will use Ripple’s On-Demand Liquitiy payment technology.
In recent years, Ripple has been able to convince many large banking institutions of the advantages of its payment technologies over traditional bank transfer systems. SendFriend recently confirmed that transaction costs of over 80% can be saved by using Ripple’s software solutions. However, it is not only remittance services that use the XRP Ledger, but increasingly the largest banks in the world.
38 of the largest banks worldwide use Ripple
An overview of the xrparcade.com website shows that more than a third of the largest banks are piloting Ripple’s technology or are already using it in normal business operations. Ripple’s cross-border payment technology has been adopted by more than 250 banks in over 50 countries, including the international payment giant MoneyGram.
The fifth largest bank in the world in terms of assets under management is the Japan-based Mitsubishi UFJ Financial Group, with assets of more than USD 2.8 trillion. The financial giant already announced in November 2018 that, in cooperation with Ripple, it will provide an international money transfer service on the payment corridor from Japan to Brazil.
Another heavyweight comes from the UK, HSBC Holdings PLC, with assets under management of just under USD 2.5 trillion. HSBC’s subsidiary, Saudi British Bank, announced on 25 April 2019 that it will use Ripple’s payment solution to digitally transform and enrich the customer experience.
Many other partners are from Japan, as Ripple has a close partnership with SBI Ripple Asia. The financial conglomerate includes, among others, Japan Post Bank with assets of USD 1.9 trillion, Sumitomo Mitsui Financial Group (USD 1.84 trillion) and Mizuho Financial Group with assets under management of USD 1.83 trillion).
Not all banks use or test the latest payment technology On-Demand Liquidity, formerly known as xRapid, but rely on RippleNet, which does not use the XRP token. However, many banks and partners have announced long-term plans to switch to the new technology.
For example, SBI Ripple Asia announced late last year that it intends to take 50% of the total transaction volume of the Ripple Network once the technical infrastructure for ODL is in place. This will mainly involve transfers from Japan to other banks in Southeast Asia.
The following table shows the top 10 banks, in terms of assets under management, already using or piloting Ripple technology:
|Name||Country||Total Assets (US$B)|
|Mitsubishi UFJ Financial Group||Japan||2,812.88|
|HSBC via SABB||United Kingdom||2,558.12|
|Bank of America||United States||2,354.51|
|Sumitomo Mitsui Financial Group||Japan||1,848.20|
|Mizuho Financial Group||Japan||1,837.80|
|Barclays PLC||United Kingdom||1,444.39|
|Royal Bank of Canada||Canada||1,039.24|
Ripple announces massive growth for 2020
Ripple CEO Brad Garlinghouse announced at the end of last year that transaction volumes are expected to increase by 600% in 2020 and that the customer base is expected to grow by 30-40%. Already in October last year, Ripple was able to achieve a higher transaction volume, as in the full year 2018. These figures show that the forecast growth does not appear unrealistic.
At the beginning of November, Ripple was able to win its 300th partner for RippleNet, thus reaching a historic milestone. Ripple employs more than 500 people worldwide and plans further expansion, especially in the Asian region. The Australian remittance market has a volume of more than USD 7.2 billion, or 0.5% of the country’s GDP.
The price of XRP has been moving sideways (+ 0.89%) within the last 24 hours and stands at USD 0.2370 at the time of writing.