UAE-based LuLu Exchange has confirmed its alliance with Ripple and India’s Federal Bank to enable quicker cross-border transfers from the UAE to India.
The relationship between Ripple and the Federal Bank, the leading private bank in India, has been speculated for a long time, with official disclosure issued by the Federal Bank. However, this is possibly the first time that a collaboration of such a tripartite nature has been revealed, especially one involving an Indian bank. Interestingly, the disclosure in question has been stated,
“This partnership will help Federal Bank to explore new corridors where Ripple is aggressively pursuing new partnerships.”
Using RippleNet, cross-border remittances are supposed to be dramatically faster and safer, with incredible innovations, particularly given the high volume of remittances between India and the UAE.
The same was recently highlighted by Asheesh Birla, Chief Executive Officer of RippleNet, who revealed that the APAC region remained Ripple’s busiest region in terms of consumer demand and transaction growth. In India alone, Ripple is collaborating with 3 out of 5 major banking firms, with the fast-growing MENA-India corridor likely to be Ripple’s largest to date.
India is the world’s top beneficiary of remittances, with the country’s share of global remittances also rising to as much as 12% in previous years.
The UAE alone accounts for more than $13.8 billion in remittances to India, ranking number one among all countries in terms of inward remittances to the country. Ripple is the first organization to deliver a blockchain-enabled solution to the country’s remittance sector.
Furthermore, according to previous studies, 20% of all trades on the Ripple On-Demand Liquidity (ODL) network used XRP as a bridge currency on RippleNet.
It should be noted, though, that it is not known if RippleNet can make use of Ripple’s native XRP crypto-asset to allow such cross-border transactions.
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