Ripple is progressing in the area of cross-border payments, seemingly inexorably. There are always new cooperations with big banks and financial institutions. This includes the latest partnership of Ripple Labs. This concerns the National Commercial Bank (NBC) in the Kingdom of Saudi Arabia. At the same time, Ripple has succeeded in entering the Saudi Arabian market, which is a major hub for international calls.
The National Commercial Bank was the first bank in Saudi Arabia and was founded in 1953. Meanwhile, it has become one of the largest financial institutions in the Middle East. The bank has over 400 branches across the country and has 5.4 million customers worldwide. At the same time, it manages the second largest banking portfolio of assets in the Middle East. In addition, the National Commercial Bank holds the majority stake in one of the largest Islamic banks in the world, the “Türkiye Finans.”
Ripple said the NCB's accession required a previous step. For example, the Saudi Arabian Monetary Authority has first tested xCurrent, Ripple's solution for cross-border payments. Ripple also announced that NCB would now be open to payment channels to North America and Asia. These channels are particularly important to the bank and its customers and would not have been available to them before.
The existing SWIFT system has created, above all, payment channels for countries with a lot of money in between. Ripple therefore targets countries that have been overlooked. In addition, many observers assume that Ripple wants to first distribute xCurrent. XCurrent uses the existing system and improves it at the same time. From this base, Ripple will probably switch banks to xRapid. XRapid is Ripples' premium offering for handling cross-border payments. This is also underlined by practical tests. For example, companies that conducted pilot projects with xRapid reported that they were able to reduce the transfer fees by 40 to 70 percent.
About $ 37 billion is being transferred abroad from the Kingdom of Saudi Arabia each year. The reason is the over 10 million foreign workers who earn their living in Saudi Arabia. They then send this home to support their families. In addition, there are a number of large and medium-sized companies that also generate significant sums internationally. Of course, Saudi Arabia is an ideal choice for Ripple. This is especially true when we expect the introduction of the finished xRapid product at the end of the year.
Twitter user “HRS” wrote:
“I've just transferred some money from my Ahli account to a UK account. That arrived right away, which surprised me, because usually it always takes a few days. Now that I see this tweet, everything makes sense. “
Sources: Ripple 1, Ripple 2, Türkiye Finans, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/ripple-xrp-neue-partnerschaft-mit-aeltester-bank-in-saudi-arabien-mit-54-millionen-kunden/
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