MUFG Bank, and its wholly owned subsidiary, Banco MUFG Brasil S.A., today announced the signing of a Memorandum of Understanding (MOU) with Banco Bradesco S.A. to collaborate on a new cross-border payment service. Through this MOU, MUFG Bank has decided to start the collaborative development for cross-border payments between Japan and Brazil, utilizing Ripple’s cutting-edge technology. The new payment system — developed by Ripple, a San Francisco-based software vendor — will assist the banks as they work toward commercializing a high-speed, transparent and traceable cross-border payments solution between Japan and Brazil. In 2017, MUFG Bank said it would join Ripple’s interbank group of leading transaction bankers responsible for building, maintaining, and enhancing rules which ensure operational consistency and legal clarity to support the Ripple global payments network.
Ripple has been dominating the Japanese market. A while ago, the San Francisco-based company set up SBI Ripple Asia, a joint venture with SBI Group. SBI Ripple Asia has since formed the Japan Bank Consortium, a group of over 60 Japanese banks that piloted RC-Cloud, a RippleNet-powered payment system. Now, MUFG has revealed it will use RippleNet to power a new payment service targeted at money transfers between Japan and Brazil.