More and more companies are recognizing the opportunities and potential of blockchain technology. The Dubai UAE Exchange will use Ripple’s payment software to accelerate business growth.
As Reuters reported, UAE Exchange (operated by Finablr) and US startup Ripple (XRP) will work together starting the first quarter of 2019. The company plans to increase cross-border payments to Asia through the use of Ripple’s Blockchain, thereby increasing speed and lowering fees.
Ripple & UAE Exchange
Asia was one of the largest receivers of remittances in 2017 with a reported volume of over $ 613 billion. Foreign workers do correspond to a large part of remittances, by sending part of their salary back home to their families. International transactions however take several days, and the fees are disproportionately high. Ripple wants to optimize and eliminate this problem.
Most of the assets are still processed through foreign exchange offices, but the proportion of alternative websites and apps offering better terms and conditions is increasing. Promoth Manghat, executive director of Finablr, states that the development and adoption of blockchain technology is still in its infancy:
“Blockchain holds tremendous promise for the industry but there is progress to be made before we see it go fully mainstream…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.”
The UAE Exchange set the goal of spending $ 300 million on further expansion. According to the company, a large part of the goal has already been achieved, but further acquisitions will follow. Manghat explained that UAE Exchange wants to become the preferred partner for banks in the Asian region:
“Blockchain is one aspect we are looking at. We want to become the partner of choice for banks and technology companies and are looking at potential bolt-ons”
Last year, Manghat said that the UAE Exchange aims to increase its share in the global remittance industry to more than 10 percent by 2020.
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