The largest bank of Saudi Arabia entered into a partnership with the San Francisco-based company Ripple. Fueled by this announcement, XRP tokens increased in price by 22%.

Ripple announced the that it concluded an agreement with the National Commercial Bank of Saudi Arabia, the largest bank of the kingdom. This bank, founded in 1953, has about 400 branches in the kingdom, and the number of its clients exceeds 5.4 million, including both individuals and companies.

The financial institution will join the decentralized payment system, RippleNet. The bank will be able to use the Ripple blockchain to conduct instant and cheap transactions between member banks around the world.

The RippleNet network promises participants not only to reduce the time of cross-border and interbank payments but also to sharply reduce transaction costs.

The number of participants in the RippleNet network exceeded 100 financial organizations. The list of them includes the Kuwait Financial House (KFH), which manages assets worth $55.52 billion and holds deposits worth $34.97 billion, the Oman-based BankDhofar, the Indian bank Kotak Mahindra, the American Express payment system. The last one tested RippleNet in 2017 year, sending transactions from the United States to the Santander Bank in the UK.

“Surveying the market, Ripple was the only company that has delivered battle-tested enterprise solutions and global bank customer traction, including commercial deals with top banks already signed in Asia Pacific. Distributed financial technology is undoubtedly transforming financial infrastructure and we’re excited to drive its adoption throughout Asia,” CEO of SBI Group and chairman of SBI Holding Yoshitaka Kitao said while explaining the decision to collaborate with Ripple.

It is worth noting that RippleNet and another product of the Ripple lab - xCurrent - do not use the XRP token.

Despite this, after the information about the partnership with the Saudi Bank entered the market, the XRP token jumped in price by 22% and reached 0.00005207 BTC ($0.33 at the current rate). XRP has not traded at this level since the last decade of August.

Since early 2018, Ripple has lost about 90% of its price. XRP reached its peak price in January 2018, when it was traded at approximately $3.14.