One of ASEAN’s largest Islamic banking franchises has joined RippleNet to enable instant blockchain-powered cross-border payments across its various markets.
CIMB Group, which counts CIMB Islamic as part of its portfolio companies, has deployed Ripple’s blockchain solution to enhance its proprietary remittance product, Speedsend. This has opened new payment corridors for the bank, both inbound into ASEAN and outbound to other countries such as the US, Hong Kong and the UK.
The banking group is one of the first banks in ASEAN to leverage blockchain technology for speedy and cost-efficient international payments. Its first-mover advantage may give it a lead in capturing the lucrative remittance business. According to World Bank forecasts, remittances to Southeast Asia in 2018 alone could be worth US$120 billion; while Boston Consulting Group estimates that the global market for cross-border payments is US$27 trillion, with another US$20 trillion up for grabs over the next eight years. Approximately 39% of this remittance market is centered in the ASEAN region.
The Malaysian banking giant, which has presence in 15 countries with nearly 800 branches, intends to extend the solution to other use cases across the group.