Major Japanese bank Resona will withdraw from Ripple-powered blockchain payment project MoneyTap on May 13, the bank announced on April 11.
A subsidiary of Resona Group, the fifth largest banking group in Japan as of 2012, Resona Bank joined the project in October 2018, along with SBI Sumishin Net Bank and Suruga Bank.
Launched on Oct. 3, MoneyTap payment service uses Ripple’s blockchain solution xCurrent, which claims to offer instant domestic bank-to-bank transfers. The project was co-developed by Japanese financial services giant SBI Holdings and blockchain firm Ripple, the firm behind XRP, the third top cryptocurrency by market cap.
In the recent announcement, Resona claimed that the bank will cancel its cooperation with MoneyTap, noting that the cooperation started on October 4. The bank did not provide any specific details to explain its decision to withdraw from the partnership, only adding that it will continue to improve its services for clients.
Recently, MoneyTap received an undisclosed investment from 13 Japanese banks and financial institutions including Kiraboshi Bank, Shinsei Bank and Hokuriku Bank.
Prior to MoneyTap’s official launch in October, SBI Holdings received a license from Japanese regulators to handle electronic payments as an Electronic Settlement Agency Service Provider.
Also read: Co-founder of Fundstrat Global Advisors Tom Lee: “Bitcoin Misery Index” recently hit its highest figure since June 2016