Support for the world's first cryptocurrency bank from XRP

Support for the world's first cryptocurrency bank from XRP

By ... | World of Crypto | 25 May 2020

Sygnum Bank, the first cryptocurrency bank licensed by FINMA (Swiss Financial Market Surveillance Agency), announced on April 30 that Ripple (XRP) tokens will be available through the bank's service platform from now on. Users will be able to use these cryptocurrencies to access credit, deposit, and exchange services. RippleNet's global payment network supports cross-border payments from more than 300 financial institutions. Banks' interest in using the Ripple protocol seems to be growing.
Swiss-based Sygnum Bank will now be able to use Ripple, the third-largest cryptocurrency market after Bitcoin and Ethereum, to be used by customers looking to diversify their direct investment in cryptocurrencies. This cryptocurrency will also be used in other Sygnum asset management services. Bank customers can purchase traditional currencies such as the Swiss franc, the euro, the Singapore dollar, and the US dollar by purchasing XRP tokens backed by the Ripple protocol.

Increase liquidity in the bank portfolio
In addition to the above, customers can transfer XRP tokens to their bank account or increase the liquidity of their Fiat currencies with a loan granted to XRP. Matthias Imbach, co-founder of Sygnum, commented on the announcement:

Ripple's excellent performance has impressed us globally. They (Ripple) now have more than 300 financial institutions on the RippleNet global payment network. XRP-based solutions developed by the company address the weaknesses of the $ 700 billion global remittance market. Cheap transfers on the Ripple network make it an ideal tool for facilitating payments in emerging economies.

The bank also stressed that the Ripple protocol, unlike the traditional method of sending money abroad, offers immediate transnational transfers of funds at low cost. Sygnum's assets are kept in separate, highly secure portfolios. These assets can be accessed with one click through the customer's e-banking platform anywhere in the world.

Banks are interested in using the Ripple protocol
This is not the first time a bank has used the Ripple protocol for its operations. Recently, Azimo, which offers Digital Money, partnered with Siam Trading Bank in Thailand to launch a fast transactional service through RippleNet. Also in February, US company MoneyGram announced that it had received funding from Ripple Labs, a blockchain payment company, to continue the process of using blockchain capabilities in its services.

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