[ad_1]
Japanese financial giant SBI Holdings is preparing to test the use of XRP in the foreign exchange (FX) market.
The pilot will use cryptocurrency to perform cross-border currency swaps, according to financial outlet Nikkei.
The test is designed to determine whether XRP’s speed can be used as a bridging asset to reduce the risk of price fluctuations that can occur when one currency is exchanged for another, as well as determine potential savings on the fees associated with the transfer.
To carry out the process, SBI allegedly partnered with cryptocurrency startup FXcoin Ltd.
According to the Bank for International Settlements, trading on global currency markets reached $ 6.6 trillion per day in April 2019. Foreign exchange swap volumes are estimated to account for around half of the FX market.
Ripple and SBI are longtime partners, and SBI invested in the San Francisco-based payment company in 2016.
In the same year, the couple launched SBI Ripple Asia in an effort to bring payments based on distributed ledger technology to financial institutions and remittance transfer providers in the region.
SBI is currently using Ripple’s payment messaging system, which is not based on XRP, to power its Money Tap settlement platform.
The company also allows shareholders to receive dividends in XRP and offers players on its e-Sports team the ability to receive their salaries in the digital asset.
Disclaimer: Opinions expressed in The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that transfers and trading are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / Sittipong Phokawattana
