Ripple has revealed a potentially significant new client in Qatar National Bank, which has introduced a new remittance service using RippleNet, the company’s global payments solution.
QNB Finansbank, one of the Middle East and North Africa’s largest banks, announced on October 4 that its new service would be introduced in Turkey as part of a larger rollout that will eventually expand to other significant remittance markets.
Ripple’s main business is remittances, which can reduce the cost of sending money home to underdeveloped nations for migrant workers. For example, a $200 transaction can cost $15 or more and take several days to complete, but the startup claims its infrastructure can process the same payment in seconds… for pennies.
RippleNet is a network of banks and financial institutions that use Ripple’s distributed ledger technology-based international payments platform to avoid utilizing SWIFT, the slow and expensive intermediary that handles nearly all interbank money transactions.
While RippleNet employs DLT, the blockchain technology, it does not use XRP, the cryptocurrency that is so closely identified with the company that it is commonly referred to as Ripple. Instead, XRP is used in the company’s On-Demand Liquidity solution to allow financial institutions to settle transactions quickly.
Embattled in the United States
Ripple was virtually pushed out of the U.S. market when the Securities and Exchange Commission launched a lawsuit accusing it of illegally marketing unregistered securities in the form of the XRP cryptocurrency for nearly a decade.
The corporation is contesting the potentially game-changing lawsuit, which may have far-reaching consequences if the SEC prevails. The regulator is seeking a judicial decision, which would effectively define most cryptocurrencies as securities for the first time.
Despite the lawsuit, which scared away U.S. clients such as MoneyGram, Ripple owns a stake; the company has witnessed robust international growth this year, particularly in Asia-Pacific.
RippleNet stated in January that it would link Malaysian mobile finance startup Mobile Money with Bangladeshi mobile financial services provider bKash, which has 45 million clients.