To strengthen its partnership with SBI Holdings, Ripple has decided to invest in one of its subsidiaries known as MoneyTap. The company made the announcement via a press release. According to sources close to the matter, with this investment from Ripple, MoneyTap would be able to position itself as a stronger player in the industry. It will allow the company to develop new services and functions quickly, such as corporate payments, outbound and inbound remittances, along with community currency. With the help of these improvements, they would also be able to boost their competitiveness in the industry.
Ripple and SBI Holdings had entered into a partnership four years ago for launching their joint venture that was referred to as SBI Ripple Asia. Since then, these companies have shared resources for improving their own competitiveness in the space. Now, Ripple believes that SBI Holdings’ subsidiary, MoneyTap, will also be able to benefit from their bond. A consumer-centric app, MoneyTap allows users to transfer money with the help of a phone number and QR code. This makes it faster, easier, and more efficient to transfer money. The goal of MoneyTap is to fulfill the needs of a growing number of people who are looking for a safer and faster way of sending money.
The MoneyTap app heavily relies on Ripple’s blockchain technology. The Japan Bank Consortium rolled out the app two years ago for ensuring instant payments. There are a total of 61 banks that are part of this consortium and the idea was to get all of them involved in the app when it was launched. However, the app hasn’t had such a smooth run since its launch. Last year in April, the Resona Bank left the project suddenly, without offering any reasons or explanations, and this was a major setback for the project. However, it has managed to gain strength from other banks that have supported its growth and expansion.
Recently, the project received the support of the Sumitomo Mitsui Banking Corporation (SMBC), which is Japan’s second-largest banking institution, which invested in its blockchain platform. Now, the app is gaining even more strength, thanks to SBI Holdings’ and Ripple’s partnership, as it has received funds that can help in speeding up its growth. A lot of industry observers are of the opinion that this investment in MoneyTap is a statement by Ripple showing that it wants to make Japan it’s new home.
Brad Garlinghouse, the chief executive at Ripple, has already echoed this thought when he said that the company might shift its headquarters to Japan due to unclear regulations in the United States. These comments were made just last week and now the investment in MoneyTap could be a signal. Japan has proven to be quite a favorable market for the San Francisco-based blockchain firm, as it is one of its largest markets. Ripple is also doing quite well in Singapore and the United Kingdom, but the CEO believes that Japan is capable of providing the perfect environment if the U.S. doesn’t make regulations clear.