The company behind digital currency Ripple has made a deal with an Emerati foreign exchange group to provide international payment services.
UAE Exchange, the Abu Dhabi-based remittances giant, has signed an agreement with Ripple - the third largest cryptocurrency by market capitalisation - on cross-border payments using the company's blockchain technology to power its network.
While the ripple coin has suffered the volatile market moves of all cryptocurrencies of late, the deal with UAE Exchange will help bring some level of legitimacy to digital currencies.
UAE Exchange is joining the RippleNet network, and aims to incorporate the fintech company's blockchain technology to power its real-time international payments system.
Promoth Manghat, UAE Exchange's chief executive (left), said in a statement: "Incorporating Ripple’s blockchain technology into our payments systems will bring customers an enhanced, new payments experience.
"The early adoption of this game-changing technology allows us to offer a competitive service, as it will have an impact on the speed and cost of cross-border transactions."
UAE Exchanges is one of the world's largest remittance companies, with an extensive Middle East network and a large focus on India, where about 40% of its offices are based.
Ripple's head of infrastructure innovation Dilip Rao added: "Adding a market leader like UAE Exchange to RippleNet will bring instant, certain, low-cost payments to the millions of retail customers in the UAE who send money abroad."
It remains unclear, however, whether the Emerati company will use Ripple's digital currency in its transactions or if it has signed the deal merely to use the company's technology in its cross-border payments system.
Nevertheless, the news was helping drive the cryptocurrency group higher on Monday.
- Ripple was 8.47% higher at $1.024
- Bitcoin added 7.18% to $8,485
- Ethereum gained 6.97% to $846.35
- Litecoin rose 5.47% to $154
Picture courtesy of UAE Exchange's website