UAE Exchange based in the United Arab Emirates is partnering with Ripple to launch new cross-border blockchain-powered remittances to Asia.
The new payments system will be based on Ripple’s blockchain network and will be launched by the first quarter in 2019.
Focusing on Asian Remittances
Asia was one of the largest recipients of the $613 billion in global remittances sent last year, with a big part of this coming from Asian expatriates working in the Middle East.
UAE exchange, which is part of foreign exchange company Finablr, is one of the leading players in this sector.
The majority of these funds are sent via foreign exchange branches. However, now apps and websites also account for a growing part with blockchain expected to play an increasing role in the coming years.
UAE Exchange and Ripple will seek to capture this market with their blockchain-based services.
Finablr’s executive director and chief executive Promoth Manghat commented on blockchain’s potential saying:
“Blockchain holds tremendous promise for the industry, but there is progress to be made before we see it go fully mainstream.”
The new service from Finablr will be available early next year. Manghat said:
“We expect to go live with Ripple by Q1, 2019 with one or two Asian banks. This is for remittances to start with, from across the globe into Asia.”
Picking up From the February Partnership
Both UAE Exchange and Ripple partnered in February this year to process cross-border payments, helping the Middle Eastern company become the largest payments firm in the region using RippleNet.
RippleNet currently includes over 100 member banks and a host of financial institutions that are engaged in making cross-border transactions easier, quicker and cheaper.
Finablr may also be exploring how Ripple can improve their B2B solutions. The company will be listing on the London Stock Exchange in the first half of 2019 and has Barclays and JP Morgan as its global coordinators.