In a landmark development for the future of cross-border payments, SBI Remit — the international money transfer arm of Japan’s SBI Group — has deepened its partnership with blockchain innovator Ripple through the expansion of their joint venture, SBI Ripple Asia. This strategic collaboration is set to revolutionize remittance services across Southeast Asia by leveraging XRP as a bridge currency for real-time, low-cost international money transfers.
The newly expanded service will now support direct bank account deposits in three high-remittance countries: the Philippines, Vietnam, and Indonesia. Launching this month, this initiative marks a significant leap forward in mainstream XRP adoption, building on years of successful pilot programs and live implementations since 2017.
A Proven Track Record in Blockchain-Powered Remittances
SBI Remit has been at the forefront of integrating blockchain technology into traditional financial infrastructure. Since 2017, it has utilized Ripple’s On-Demand Liquidity (ODL) solution — powered by XRP — to facilitate faster and more affordable cross-border transactions. In 2021, the company made history by launching Japan’s first regulated international money transfer service using XRP as an intermediary asset, enabling users to send funds from Japan to cryptocurrency wallets in the Philippines.
This early adoption demonstrated the viability of digital assets in real-world financial systems, particularly in regions where remittances play a vital role in economic stability. Now, with the latest expansion, the focus shifts from wallet-to-wallet transfers to direct bank-to-bank settlements, significantly improving accessibility for unbanked and underbanked populations.
“With the expansion of XRP-powered ODL services from Japan to Vietnam and Indonesia, we’re taking another step toward building a seamless global payment network.”
— Tomohiko Kondo, Executive Officer at SBI VC Trade
This quote from SBI’s leadership underscores the long-term vision: creating a frictionless, scalable, and cost-efficient international remittance corridor powered by decentralized finance principles.
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Why Southeast Asia? The Strategic Choice Behind the Expansion
The selection of the Philippines, Vietnam, and Indonesia is no coincidence. These nations rank among the top recipients of remittances in Asia, with millions of overseas workers relying on cross-border transfers to support families back home.
According to the World Bank, the Philippines alone received over $36 billion in remittances in 2023, while Indonesia and Vietnam saw inflows exceeding $20 billion and $17 billion respectively. Traditionally, these transfers have been plagued by high fees (averaging 5–7%) and delays of up to several business days due to reliance on correspondent banking networks.
By deploying XRP-based ODL, SBI Remit can now settle transactions in seconds at a fraction of the cost — often less than 1%. This not only improves user experience but also increases financial inclusion by making formal remittance channels more attractive than informal alternatives.
Moreover, Ripple’s established partnerships with local financial institutions and payment providers — such as Tranglo, a leading remittance facilitator in Southeast Asia — ensure smooth last-mile delivery in local currencies. This integration bridges the gap between cutting-edge blockchain technology and real-world banking infrastructure.
How XRP Powers Faster, Cheaper Cross-Border Payments
At the heart of this innovation lies XRP, one of the most efficient digital assets designed specifically for institutional payment solutions. Unlike traditional cryptocurrencies focused on decentralization or smart contracts, XRP was engineered for speed, scalability, and interoperability within global financial systems.
Here’s how the process works:
- A customer initiates a transfer from Japan via SBI Remit.
- The fiat amount is converted into XRP and transmitted across Ripple’s network in seconds.
- Upon arrival in the destination country, XRP is instantly converted into local currency (e.g., PHP, VND, IDR).
- Funds are deposited directly into the recipient’s bank account through local partners like Tranglo.
This entire process typically takes under two minutes — compared to 1–5 days with conventional SWIFT-based systems — and eliminates pre-funded nostro accounts, reducing liquidity costs for financial institutions.
Additionally, because XRP transactions consume minimal energy, this model supports environmentally sustainable fintech growth — aligning with ESG goals increasingly prioritized by global banks and regulators.
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Core Keywords Driving Adoption
This expansion highlights several key themes central to the evolving digital asset landscape:
- XRP adoption
- Cross-border payments
- Blockchain remittance
- On-Demand Liquidity (ODL)
- Financial inclusion
- Real-time settlements
- SBI Ripple Asia
- Southeast Asia remittances
These keywords reflect both technological innovation and socioeconomic impact, making them highly relevant for users searching for insights on blockchain applications in finance.
Importantly, the integration remains compliant with local regulations, emphasizing licensed operations and partnerships with established financial entities — a critical factor in gaining regulatory trust and public acceptance.
Frequently Asked Questions (FAQ)
Q: What is On-Demand Liquidity (ODL)?
A: ODL is Ripple’s blockchain-based solution that uses XRP as a bridge currency to enable instant cross-border payments without pre-funding accounts in foreign currencies.
Q: Is XRP being used as a cryptocurrency wallet here?
A: No. In this case, XRP operates behind the scenes as a settlement asset. End users send and receive fiat money; XRP facilitates the transfer but isn’t visible to them.
Q: Are there any fees associated with XRP-powered transfers?
A: Transaction fees are extremely low — typically less than $0.01 per transfer — making it one of the most cost-effective remittance methods available.
Q: Can individuals use this service directly?
A: Yes. Customers of SBI Remit can access the service through its official platform for personal or business international transfers to supported countries.
Q: How does this benefit local economies?
A: Faster access to funds helps families manage emergencies, pay bills on time, and invest in education or small businesses — contributing to broader economic resilience.
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The Road Ahead: Scaling Global Impact
The expansion into Vietnam and Indonesia represents more than just geographic growth — it signals growing confidence in blockchain-based settlement systems among institutional players. As SBI Ripple Asia continues to refine its operations and explore new corridors, other markets in South Asia, Africa, and Latin America could follow.
With increasing demand for faster, cheaper, and more transparent financial services, solutions like XRP-powered ODL are poised to redefine the future of global payments. For SBI Group and Ripple, this isn’t just about technology — it’s about building a more inclusive financial world.
As adoption accelerates and regulatory frameworks evolve, expect further announcements around interoperability, central bank digital currencies (CBDCs), and multi-currency blockchain corridors in the near future.
For now, one thing is clear: the era of slow, expensive international money transfers is coming to an end — and XRP is helping lead the charge.