Kuwait’s Biggest Islamic Bank Launches Service Using Ripple Blockchain Technology

Kuwait seems to be willing to embrace blockchain technologies as tools of financial innovation. A few hours ago, the Kuwait Finance House, the country’s largest Islamic bank confirmed via Twitter that it had started a new business service powered by Ripple Technology.

The Zero Fees “Instant International Transfer” service and allows in its initial stage to make monetary transactions without the friction of the SWIFT system. The bank announced that the “service is available now in Saudi Riyal SAR where customers can make remittance transactions to beneficiaries at Al Rajhi Bank.”

The implementation of this service is the last step of a complex project that began last year. Speaking at the Global Islamic Economy Summit 2018, a Chairman of the KFH mentioned in October 2018 that they were already testing a service with Ripple to challenge incumbents like SWIFT.

The announcement by the big Kuwaiti bank comes just days after The National Bank of Kuwait (NBK) made a similar statement saying that thanks to Ripple’s technology it could offer a money transfer service between its branches located in 15 countries around the world:

This service is a significant achievement as it enables our customers to make money transfers within seconds, efficiently and at their convenience any time of the day. The launch comes as part of our commitment to responding to the needs of our customers wherever they are around the world, providing them with safe solutions and a global presence in 15 countries.”

So far it is not known which solution the Islamic bank is using, however following in the footsteps of the NBK, the KFH commented that its team has plans to expand its Ripple-powered services internationally:

With this new partnership, Ripple consolidates itself as the most serious alternative to the SWIFT platform for payment processing in Kuwait. Ripple’s penetration in the region, as well as the approval of critical financial institutions from allied countries, has given the company behind XRP a high level of credibility and status.

So far the KFH has given no further details. It is expected a soon press release or a more extensive announcement explaining to the community a little more about the new service.

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