Ripple Invests In Japan-Based Payments Platform MoneyTap

Key highlights:

• Ripple has invested an undisclosed sum into MoneyTap
• MoneyTap, which uses RippleNet, is a payments app for the Japanese market
• MoneyTap allows customers to make transactions 24/7 and addresses the issue of high interbank fees

Ripple invests in MoneyTap, a Japanese payments platform that leverages RippleNet

Japanese payments platform MoneyTap has announced that blockchain-powered fintech firm Ripple has made an investment in the company. The news was reported by CoinDesk Japan, but the investment sum has not been disclosed by Ripple or MoneyTap. 

The investment doesn’t come as a major surprise given that MoneyTap uses RippleNet, a payments network created by Ripple. While MoneyTap does use technology provided by Ripple, it does not employ the digital asset XRP.

RippleNet connects banks at both ends of a transaction, allowing them to share information in a secure and verifiable way on a blockchain platform. According to Ripple, RippleNet is used in more than 55 countries and provides access to 120 currency pairs. About a year ago, Ripple announced that RippleNet crossed the threshold of 300 financial institutions and payment providers signing up.

MoneyTap was first announced in March of 2018, and is supported by Japanese conglomerate SBI Holdings and SBI Ripple Asia. Later on, MoneyTap was re-structured, and 13 Japanese banks became shareholders in the platform. These banks include Daiwa Securities Group, Ashikaga Bank, Seven Bank, and others.

MoneyTap wallets are linked to bank accounts and facilitate p2p payments between customers. The solution sidesteps the Japanese banking system’s problem of only handling transactions during the weekdays, and also addresses the issue of high interbank fees in Japan. 

It’s interesting to see Ripple making an investment in MoneyTap while it’s hinting at Japan as a potential destination for its headquarters. Ripple executives, including executive chairman Chris Larsen and CEO Brad Garlinghouse, have recently stated that the company could potentially relocate from the United States due to a lack of clarity in the country’s approach to cryptocurrency regulation. Japan and Singapore have been mentioned as likely destinations if Ripple does decide to move away from the United States.