Mitsubishi, MUFG and Standard Chartered in payments pilot over RippleNet
Mitsubishi Corporation, MUFG Bank, Bank of Ayudhya (Krungsri), a Thailand-based subsidiary of MUFG, and Standard Chartered have started a pilot test for moving real funds over RippleNet.
This cross-border payments pilot will be carried out by Mitsubishi between the accounts of its subsidiaries in Thailand and Singapore, under the Bank of Thailand’s regulatory sandbox framework.
Mitsubishi says: “It is the first time for a Japanese company to conduct cross-border payments over RippleNet.”
The software developed by Ripple uses Interledger Protocol, which provides pre- and post-settlement messaging function, and allows for the real-time settlement and delivery of funds. Financial institutions with this software can transact between each other across the network, RippleNet.
Based on the results of this pilot test, the companies will work towards commercialising this solution.
Mitsubishi, MUFG Bank, Krungsri and Standard Chartered say they have been working together to “improve financial efficiency internally using next generation technologies”.
This pilot is the first result of their joint project to improve cash management with a real-time, multi-currency, multiple-bank platform.
Since 2015, Ripple and an advisory team made up of transaction bankers including Standard Chartered and MUFG, have been building the “Rulebook”, a common framework that “ensures operational consistency and legal clarity for every transaction”. This group actively advises on maintaining and enhancing the rules and standards.