On August 15, 2018, a Ripple executive announced that the company is planning to apply its distribution ledger technology (DLT) in markets of China to cross-border payments.
China, a country of interest
Ripple’s vice president of European Union Strategic Accounts, Jeremy Light said, “China is definitely a country and region of interest”. The company plans on entering the Chinese market with the aim of fastening the international payments through its DLT. The company’s blockchain service bought more than 100 financial establishments into Ripple’s network. It is in contrast to the most popular purpose of blockchain which is to back and power different cryptocurrencies. Ripple had partnered with a Chinese payment provider LianLian in February 2018. The intention was to finally enter into the inviting markets of China.
Read more: Is Ripple tech pairing up with SWIFT?
Partnerships with Ripple
Ripple’s portfolio includes some big financial names like UniCredit, Santander, UBS and others. However, the company is still facing a tough competition from the fintech firms that offer payment solutions. Ripple’s aim is to provide cheap and speedy international transactions to the customers around Europe, China and the United States. China’s first issuance of digital invoice on blockchain was made by Tencent which implemented a pilot blockchain ecosystem for invoices. Out of many similar pilots, the aforementioned received the official approval of the State Administration of Taxation. The company has designed it considering tax authorities, merchants and consumers.
Back in June 2018, Ant Financial had entered into “definitive agreements” with investors in order to secure $14 billion in a Series C equity financing round. Also, Ant Financial is the same firm which is backing online payment and mobile platform Alipay. It had intended to invest the funds in order to accelerate Alipay’s blockchain and other innovative technologies. Moreover, it’ll allow Alipay to deliver financial services to unbanked and underbanked consumers.