The Lulu International exchange has announced a partnership with Ripple and Federal Bank in a tweet on Jan 26.
UAE to India
According to the exchange, this partnership will allow an enhanced real-time payment system to function between the United Arab Emirates (UAE) and India.
It will reportedly be faster and more affordable for exchange customers. The announcement follows a lawsuit filed by the SEC against Ripple for the sale of unregistered securities.
Using RippleNet, cross-border remittances are supposed to be faster and more secure. This is a significant development considering the high remittance volumes between the UAE and India. However, it hasn’t been confirmed whether xrp will be used for any of these cross-border transactions.
Lulu Exchange currently has 76 branches across the UAE. As has been highlighted by Asheesh Birla, RippleNet’s General manager, the Asia-Pacific region is the busiest for customer demand and transaction growth.
And now, the company has become the first entity to provide a blockchain-based remittance solution for India and the UAE. This should lead to additional growth in customer demand for Ripple in the region.
A week ago, Ripple-backed Moneygram also announced a partnership with Lulu Money to extend its shared presence in the Asia-Pacific region. According to Adeeb Ahmed, Managing Director of LuLu Financial Group:
“This partnership will revolutionize how the region manages its high volume of remittances, launching unique services into the market, changing the way people approach digital transactions and remittances. We believe this marks a new era for digital money transfers and remittances in the Asia-Pacific region and the world.”
Federal Bank and Ripple
Lulu established its relationship with Federal Bank and Ripple back in 2019 when it officially announced a partnership. According to a disclosure document:
“ […] this partnership allows Federal Bank to explore new corridors where Ripple is aggressively pursuing new partnerships.”
Federal Bank CEO, Shyam Srinivasan, and Senior Vice President of Ripple Inc, John Mitchell, signed the agreement.
This was arguably the first time such a partnership had been announced, especially involving an Indian bank. Consider that previously the Indian Supreme Court had upheld a ban on cryptocurrencies.
Xrp is down some 5% on the day versus the US dollar.