On Friday, the MUFG Bank, the major banking division of Mitsubishi Financial Group (MUFG), publicly reported that it had signed a Memo of Understanding with one of the major Brazilian banks, Banco Bradesco. The goal is to join efforts in creating a new payment system based on the Ripple platform that would work between their countries.
Background of the partners
The MUFG Bank is the biggest player in Japan in this field. The parent company, MUFG, was founded nearly 400 years ago in Tokyo and is one of the major units of the Mitsubishi Group.
Its Brazilian partner in this deal, Banco Bradesco, was set up in the early 1940s and is based in Osasco, the São Paulo administrative area.
Both banks are going to trial RippleNet, the payment system designed to be used globally between banks for transactions.
Collaboration dates back to last century
The press release issued by MUFG states that the business connections between the Mitsubishi Bank and Bradesco were established as early as in 1973, when the Japanese partner made a large investment in the Brazilian bank. In 2017, this collaboration was renewed, and now the banks plan to extend it further.
The Ripple community on YouTube responded well to the news, showing a wave of enthusiasm.