Cross-border payment solution provider, Ripple/XRP, announced that Saudi Arabia’s National Commercial Bank (NCB) had become its latest enterprise customer, joining its RippleNet.
Following Ripple/XRP’s pilot with the Saudi Arabian Monetary Authority earlier in February 2018, one of the largest financial institutions in the Middle East, the National Commercial Bank (NCB), has now joined RippleNet, a global payment network for corporates, digital asset exchanges, payment providers, and banks.
NCB to connect financial institutions through RippleNet
Managing more than 400 branches across the Kingdom of Saudi Arabia and with more than 5.4 million customers globally, the National Commercial Bank will use RippleNet to connect with other financial institutions globally, particularly those based in Singapore, Asia, and North America.
RippleNet provides immediate value to NCB’s customers, allowing them easy access to services across different regions, something that was very difficult to achieve before. For corporations and SMEs that depend on the National Commercial Bank, more transparent and efficient remittance payments will go a long way in improving the performance of Saudi Arabian businesses located in offshore jurisdictions.
Huge win for Ripple
Following the news about Ripple/XRP’s deal with the National Commercial Bank, the price of XRP, the platform’s native token, recorded an incredible growth, surging 4.99% in the last 24 hrs to trade at £0.21 ($0.28) at 9:00 BST.
It’s clear that the partnership is a great win for Ripple/XRP especially in the long-term, considering that the Kingdom of Saudi Arabia is a major player in the remittance payments, with data showing that ‘308 million dollars were sent into the country, and about 37 billion dollars in remittances were sent from the country in 2016’ as per Ripple/XRP.
Once the National Commercial Bank starts to use RippleNet, something that’s expected to happen by the fourth quarter of 2018, many financial institutions across Asia and other regions will also likely follow suit to connect to the Ripple/XRP’s network, boosting the platform’s popularity and the value of its token, XRP, significantly. This is also particularly great news considering Ripple/XRP seems to be pulling ahead of Stellar and IBM in regards to creating a monopoly in the cross-border payment solution space.
RippleNet is a decentralised global network for payment providers and banks using Ripple’s technology. By using RippleNet, financial institutions and banks such as the National Commercial Bank will be able to transact more seamlessly with foreign entities, eradicating the pain points currently experienced in the global payment system such as high transaction costs, limited transparency, and transfer delays.