A joint venture between SBI Holdings and Ripple intends to launch a payment app for consumers.
Additionally, the participants indicate that the blockchain will power the system.
Regulatory Path Cleared for SBI Ripple Venture
SBI Ripple Asia announced on Wednesday that it completed registration with the Japanese Ministry of Finance’s Kantou bureau to become an agent, allowing it to handle electronic payments.
Furthermore, this registration ensures regulatory compliance and allows the collaborative venture to launch its MoneyTap payment app. This app aims to facilitate peer-to-peer money transfer over a DLT network for retail users.
Moreover, the Financial Services Agency (FSA) of Japan requires any business that intends to handle electronic payments using the open APIs of banks, to register with the local finance bureaus.
The FSA announced in May that this legal requirement was implemented on June 1 this year.
The New App
SBI Ripple Asia stated that the MoneyTap app relies on the blockchain technology. It connects with open APIs among the participating domestic financial institutions. Therefore, the venture, as a third-party transaction agent, falls into this regulatory category.
SBI Ripple Asia earlier announced its plans to initiate a blockchain-based payment app for its Japanese consumers across three banks. Additionally, it indicates plans to subsequently expand to more than 60 financial institutions.
Takashi Okita is the chief executive of SBI Ripple Asia. He said that the firm is now looking forward to launching the service in autumn. Additionally, he said that the app will be available for download on both iOS and Android devices.
Presently, the SBI Group is also testing its own crypto token called the “S coin” based on the DLT. The launch of this new technology will promote its aim to boost the efficiency of retail payments on mobile devices.
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