Cryptocurrency firm Ripple reported on Wednesday that it is preparing to invest in MoneyTap, a blockchain solution for money transfer developed by Ripple and Japanese financial giant SBI Holdings. MoneyTap uses Ripple's global RippleNet financial settlement network for the provision of payment transactions, international transfer payments and business payment services. The project has received support from several Japanese financial institutions. In April 2019, Resona, one of the first MoneyTap members, pulled out of the project with no explanation for its departure.
Why it matters: Ripple has one of the most capable platforms in the world, and this latest addition just makes the Ripple ecosystem even more powerful. Unlike Bitcoin, which put the idea of decentralized money first, Ripple was made to be used by banks and other large companies. It is surprising that so few US companies have adopted it, although it has found a lot of support in Asia, especially in Japan. Given the lack of enthusiasm surrounding Ripple, these kinds of events aren't likely to move the price of XRP. Over time, as the Ripple ecosystem becomes more powerful, there may be a substantial repricing of the token, especially if it becomes a major player in the bank transfer markets.