Bank of Ayudhya has revealed that it has successfully completed a pilot for the first real-time international remittance from Thailand to Singapore over the blockchain. The bank stated in a press release that the pilot test was conducted jointly with the Japanese banking conglomerate MUFG, Mitsubishi Corporation and Standard Chartered Bank Singapore. The test was conducted over the bank’s blockchain platform, the Krungsri Blockchain Interledger.
Enhancing Flexibility And Efficiency
The Bank of Ayudhya, commonly known and branded as Krungsri, is the fifth biggest bank in Thailand with its headquarters in Bangkok. The bank’s head of digital banking and innovation Tharkon Piyapan praised the blockchain platform for its ability to transfer funds across the border in real-time. He also expressed the bank’s excitement at working with the Mitsubishi Corporation (MC), a Fortune 500 company which is the largest trading company in Japan.
The Thailand subsidiary of MC was able to send money from its account at the Bank of Ayudhya to the Standard Chartered account of the Singapore subsidiary. The transaction was carried out via the Krungsri Blockchain Interledger technology and took just a few seconds. Mr. Piyapan hailed the technology as revolutionary especially for the Mitsubishi Corporation which will now be able to achieve greater flexibility and efficiency which will enhance the financial liquidity of its subsidiaries.
The bank’s first transaction over the blockchain was conducted in September 2017 and according to the press release, this changed the financial landscape for the business sector. The first successful transaction was by Thai petroleum and petrochemical products company IRPC which used the Krungsri Blockchain Interledger to send money to its overseas trading partners. This positioned the bank as the pioneer bank in digital innovation in the country and earned the bank an award for Most Innovative Emerging Digital Technologies Project.
MUFG has continued to invest in the research and development of blockchain technology having announced yesterday that it had partnered with U.S cloud services provider Akamai to release a global payment network. The bank, which is the largest in Japan and the fifth largest in the world, said that the new platform will be capable of processing a million transactions per second and have the ability to finalize an execution in less than two seconds. It would be deployed on Akamai’s high-speed and very secure cloud platform and would also incorporate other technologies such as internet of things.
MUFG has also announced its intention to launch its own cryptocurrency in 2019 which will be known as MUFG Coin. The coin will be issued to at least 100,000 customers at first who will download an app that will convert their deposits into digital tokens. Users will be able to pay for services at restaurants and convenience stores with the coins. They’ll also be able to transfer their digital tokens to other account holders.
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