Japan’s biggest bank MUFG and Brazil’s Banco Bradesco are to collaborate on a new cross-border payment service based on Ripple technology.
MEMORANDUM OF UNDERSTANDING
The two banks signed a Memorandum of Understanding (MOU), agreeing to co-develop the system.
Mitsubishi UFJ Financial Group is Japan’s largest banking group and recently announced it would launch its own cryptocurrency. It provides specialist services in Brazil as well as Latin America. São Paulo’s Banco Bradesco is a leading universal bank in the region.
Once implemented, the system will enable fast, transparent, and traceable international payments between Japan and Brazil.
Mitsubishi UFJ Financial Group Bank said last year that it would join Ripple’s interbank group of leading transaction bankers. This group is responsible for ensuring operational consistency and legal clarity to support the Ripple global payments network.
The Memorandum of Understanding is actually an extension of an earlier agreement between the two banks in September 2017.
The banks’ relationship began back in 1973 when an Mitsubishi UFJ Financial Group predecessor invested in Bradesco.
Mitsubishi UFJ Financial Group Bank was the first Japanese financial group to establish a presence in Brazil, as another of its predecessor banks opened a branch in Rio de Janeiro way back in 1919.