[DigitalToday reporter Jinju Hong (홍진주)] Japan's Tottori Bank has partnered with SBI Remit to start an overseas remittance service.

On April 20 local time, blockchain outlet The Crypto Basic reported that the partnership made Tottori Bank the 26th financial institution to join SBI Remit's partner network.

The service targets regions in Japan where demand has risen from foreign workers. It reflects growing demand for fast and low-cost remittances in places such as Tottori prefecture, where overseas workers account for a larger share of the local economy. The outlet cited rising requirements from companies, employers and foreign workers for transfer speed, fees and convenience.

Tottori Bank can now simplify procedures for customers making small-value overseas transfers by linking to SBI Remit's service. The SBI Remit network promotes instant transfers, low fees and 24-hour access. It also supports e-wallet methods that are spreading in receiving countries. It includes support for 12 languages to improve user accessibility.

A key point is that the remittance network operates based on Ripple's distributed ledger technology. SBI Remit said the infrastructure enables secure, fast and low-cost transactions. This again confirmed that blockchain-based overseas remittance models are expanding into practical use within Japan's financial sector.

XRP is not always used in this structure. It can be used as a bridge currency between fiat currencies in segments where liquidity is secured. The outlet noted that using XRP as an intermediary asset can support faster cross-border payments. It means XRP's role stands out in remittance segments where traditional liquidity is insufficient or costs are high.

The partnership also aligns with a move to reduce operational burdens for financial institutions. Banks are showing interest in linking small-value remittance operations to external networks as requirements grow for anti-money laundering and counter-terrorism financing rules, as well as the shift to ISO 20022. Tottori Bank can use SBI Remit's infrastructure to improve efficiency in related operations and enhance customer service.

It also showed that Ripple-based payment networks are gradually expanding in Asia. As banks and financial institutions adopt blockchain-based remittance systems, the scope for using XRP as a liquidity tool could also broaden. Tottori Bank's participation served as an example of why XRP is being cited as one of the beneficiary assets as the overseas remittance market shifts toward a digital-centered system.