SBI Ripple Asia Secures Clearance For Launching Blockchain Payment Application MoneyTap

Blockhain Tech
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SBI Ripple Asia Secures Clearance For Launching Blockchain Payment Application MoneyTap

SBI Ripple Asia recently received a license for blockchain payment application MoneyTap. Prior to that the joint team of US startup Ripple Labs and SBI Holdings, a Tokyo-based banking giant, registered with Japan’s Ministry of Finance Kantou bureau as a licensed agent. The license authorizes the SBI Ripple Asia venture to launch its payment application for handling electronic payments.

In May this year, the Financial Services Agency (FSA) of Japan made it mandatory for businesses interested in conducting electronic cash transfers through APIs of banks to register first with the local finance bureau. The legislation became effective from June 1, 2018.

SBI Ripple Asia’s blockchain payment application MoneyTap uses DLT

SBI Ripple Asia’s MoneyTap app works on the basis of distributed ledger technology (DLT) for conducting transactions through APIs. That is why meeting the new regulatory requirement became necessary for the venture. The project MoneyTap came into existence in March 2018. The app will focus on the on-demand payments of the Japanese providing 24/7 availability for local businesses. It can prove to be a significant issue for attracting the public to Money Tap. Currently, domestic banks allow transactions only during weekdays from 8:30 am to 3:30 pm.

The approval is slightly surprising as off late Japan has become stricter when it comes to imposing regulations on electronic and fintech payment companies.

JBC to be the main client for MoneyTap

The Japan Bank Consortium (JBC) will be the main client of the blockchain payment application MoneyTap in Japan. Some other expected first clients of MoneyTap include Suruga Bank, SBI Net Sumishin Bank, and Resona Bank. SBI Ripple Asia is planning to make the MoneyTap app live by the end of 2018.

MoneyTap is the result of increasing demand from the investors looking for use-cases for XRP, a cryptocurrency intertwined with the Ripple platform. The expansion in the list of XRP use-cases including xRapid product from Ripple is most likely to spike the trading and liquidity volume of XRP.