Blockchain company Ripple to invest in SBI Holdings’ Money Tap
By Edil Corneille
Japan’s SBI Holdings announced the intention of Ripple Labs to invest in its subsidiary Money Tap. San Francisco-based Ripple is a provider of enterprise blockchain solutions for global payments.
Money Tap endeavours to build a financial ecosystem. The company develops a payment platform that uses Ripple’s technology to promote 24-hour and realtime payments. It enables consumers to make payments via a bank account, phone number or QR Codes.
Money Tap is seeking to expand the functions of the system platform to include prepaid charge functions for various payment service providers. By forming an ecosystem with financial institutions, and business operators such as payment providers and FinTechs, Money Tap aims to enhance the customer experience.
On May 18, 2016, Ripple and SBI Holdings co-founded SBI Ripple Asia and have been expanding the business targeting Japan, South Korea and parts of Southeast Asia.
Founded in 2012, Ripple explores innovation in monetary and financial systems endeavouring to build the ‘Internet of Value’. With 9 offices and nearly 500 employees worldwide, Ripple developed RippleNet, a payment platform which is provided to financial institutions globally.
XRP, the digital asset used in RippleNet, was designed to serve as a bridge between fiat currencies in remittance transactions, giving access to on-demand liquidity. XRP is open-source decentralised blockchain technology which can consistently handle 1,500 transactions per second, 24×7, and can settle transactions in 3-5 seconds.
Through the provision of financial infrastructure, Money Tap wants to help revitalise the economic activity and improve international competitiveness by applying sound competition principles to the fee levels of the existing rigid payment infrastructure. This may also help to lower transfer charges and other charges borne by general consumers for remittances and other transactions.
Through this latest investment, Money Tap will further strengthen its partnership with Ripple and accelerate the development of new functions and services including a small amount collection service and corporate payment function, a community currency, an overseas remittance service, inbound and outbound remittance services, and a supply chain finance function.
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