Mitsubishi Corporation, Standard Chartered and Bank of Ayudhya (Krungsri) — a Thailand subsidiary of MUFG Bank — jointly announced a pilot test for payments between Singapore and Thailand with xCurrent.
With production volume growing on RippleNet at an exponential rate, this pilot is further marked as a unique milestone by the inclusion of Mitsubishi Corporation. Like many of their Fortune 500 peers, Mitsubishi Corporation’s is pursuing faster, more transparent and traceable solutions for global liquidity management.
Many multinational corporations have to create buffers of liquidity throughout the world, forcing them to sit on pools of idle cash. This dormant capital is subject to foreign exchange, counterparty and fraud risks, as well as administrative burdens, making cross-border payments even more complicated for these entities.
The goal of the pilot is to demonstrate the commercial viability of delivering high-speed cross-border payments between independent banks. As global trade continues to increase, the problems associated with cross-border payments are being experienced by smaller businesses as well. These companies don’t have the treasury resources or experience in navigating the pitfalls of today’s payment rails.
As a result, like much of the consumer market that has turned to fintech companies for cross-border remittances, a growing base of enterprises are turning to fintech providers to address their global payment needs. To maintain a competitive edge, many financial institutions have begun to adopt new technology like Ripple’s blockchain-powered solutions.