Ripple Partners with Kuwait Finance House, One of the Largest Islamic Banks in the World
Kuwait Finance House (KFH) recently announced that it is partnering with the real-time payments system Ripple. KFH is one of the largest Islamic banks in the world and the first bank in Kuwait to join RippleNet.
By utilizing the blockchain platform, the bank will be able to offer cross-border money transfers securely and instantly. By joining the network, the bank is participating in a worldwide blockchain network that includes more than 100 financial institutions such as payment providers and banks.
However, many details surrounding the rollout are have not yet been disclosed. For example, it’s not known if the bank will use Ripple’s xCurrent, which allows settlements in fiat currency, or Ripple’s xRapid, which uses XRP for liquidity.
— Ripple (@Ripple) May 29, 2018
KFH-Group CEO Mazin Saad AlNahedh underscored KFH’s willingness to support Zakat House in order to carry out charitable community work that will “boost the efforts of social development and humanitarian work.”
KFH Awaits Approval from the Central Bank
KFH still needs the approval of the Central Bank of Kuwait before KFH is able to launch the new Ripple-enabled service. This appears to be a mere formality in the process, and KFH is positive that the necessary approval will be granted.
The joint venture means that KFH customers will be able to benefit from fast payments with the added value of increased efficiency, security, and transparency that blockchain technology provides. Bank customers will also be able to enjoy lower fees for international wire transfers.
Cover Photo by JC Gellidon on Unsplash
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