SBI Ripple Asia has created a Japanese consortium of 15 banks in a new network that will use Ripple’s technology for payments and settlement.
Ripple said that the consortium will enable round-the-clock settlement at a significant cost reduction to its members and their consumers.
Currently, cross-border fees can run up to thousands of yen (or tens of dollars). In the new setup, banks will pay about 90% less in fees, Ripple added.
Ripple expects to increase the size of the consortium to 30. The new service will go live in the spring of 2017.
“Starting from late August 2016, financial institutions will be solicited to become members of the Consortium, and at its inception in October of the same year, the inaugural members will likely consist of 15 banks or so with about 30 banks expected to be on the membership list in March 2017,” SBI said.
SBI Ripple Asia was formed in January 2016 through a JV between distributed ledger tech provider Ripple and Japan’s financial services provider SBI Holdings. In July, Mizuho Financial Group became one of the first banks in Japan to pilot blockchain for cross-currency settlement using Ripple.