Spanish banking giant, Santander, has announced its utilization of Ripple’s remittances services for the Mexico-U.S corridor.
This was announced by the Executive Chairman of the Santander Group, Ana Botin, in an interview. While talking about innovation and new products to facilitate banking, Botin revealed that Santander had joined hands with Ripple to facilitate cross-border payments.
“You know we are launching one pay effect which is a Blockchain-based retail cross-border payment with Ripple, by the way, a U.S. company. That’s coming to the US. We’re going to do Open Bank… and we created the North America region, Mexico-U.S. So we now running a lot of these businesses together. So you’ll see good results in the coming years.”
The Executive Chairman also noted that almost $35 to $36 billion is sent from the U.S. to Mexico and thus, Santander is “relaunching a fast competitive remittances program” that would bridge the gap between Santander branches to any bank in Mexico.
Calling it a part of Santander’s footprint, Botin expects the program to attract new customers, with a commitment of reaching 12% return “in tangible equity over the next couple of years which is way above our cost of equity.”
The Head of Digital Investment Banking at Santander, John Whelan, had previously informed of the bank rapidly extending the utilization of Ripple’s services at an event organized by the Institute of Global and European Affairs. Whelan had noted that the bank has been working on four gateways and soon will be working in all ten corridors.
“We in certainty have a block chain-subordinate overall installments procedure which is working on four of our passageways: Brazil, Mexico, United realm, Spain. It’ll be on each of the 10 rapidly. Quick moves at incredibly, amazingly tight spreads: 30 establishment subtleties. It is incredibly individual information. I use it myself. I dispatched assets to the United States. It’s available a careful day. “
After Santander’s deal with Ripple, there were rumors of it utilizing XRP, which it later put to rest by stating that the bank was using xCurrent, which does not use XRP for transactions. However, Whelan noted that Santander has tested the service they are to provide for the corridors, calling it “completely consistent.”