UAE-based Lulu Exchange has declared a collaboration with Ripple and Federal Bank in a tweet on Jan 26. According to the exchange, this association will provide an improved real-time payment system to operate between the UAE and India. It will supposedly be quicker and more affordable for exchange consumers. The declaration comes after a lawsuit filed by the SEC against Ripple for the trade of unregistered securities.
The collaboration between Ripple and a leading private bank of India, Federal Bank, has long been rumored, with an official disclosure published by the Federal Bank doing the rounds too. Nevertheless, this is possibly the initial time an alliance of such a tripartite nature has come into existence, particularly one including an Indian bank. Employing RippleNet, cross-border remittances are supposed to be essentially faster and more stable. It is an incredible development, particularly in light of India and the UAE’s high remittance volume.
Lulu Exchange owns 76 Branches across UAE
Recently, Lulu Exchange has 76 branches over the UAE. As emphasized by RippleNet’s General manager, Asheesh Birla, the Asia-Pacific region has the most active consumer demand and transaction growth. The company has become the first organization to offer a blockchain-based remittance solution for India and the UAE. This should point to a further increase in consumer demand for Ripple in the region. A week ago, Ripple-backed Moneygram also declared an association with Lulu Money to enlarge its shared presence in the Asia-Pacific region.
Further, the Federal Bank of India is an Indian private bank. It has its headquarters in Aluva, Kochi, which also has foreign branches in Abu Dhabi and Dubai. Moreover, it has a consumer base of 10 million, incorporating 1.5 million non-resident Indians. It also possesses an extensive network of remittance partners worldwide. Federal Bank treated more than 15% of India’s total foreign remittances of $79 billion in 2018. Engaging Ripple about the collaboration is that the Federal Bank of India has payment agreements with above 110 banks/exchanges worldwide. The bank is also registered on the BSE, NSE, and London Stock Exchange and has a chapter in IFSC (India’s first International Financial Services Centre) in GIFT City in Gujarat.
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