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Source: Wit Olszweski – Shutterstock
- FXCoin with Ripple partner, SBI and others will launch an XRP-based product to reduce volatility when sending remittances.
- The XRP-based solution will enter a pilot phase at the end of November. If successful it will be adopted by FXCoin partners.
A new adoption of the XRP digital asset could reach Asia. Ripple’s partner, SBI, has worked with cryptocurrency exchange FXCoin and others to develop an XRP-based solution that reduces volatility when sending remittances. Announced in April this year, the solution is expected to be rolled out in a trial format by the end of November.
FXCoin is a relatively new exchange. Its operations began in 2018, founded by former Deutsche Bank employees. However, it wasn’t until the end of 2019 that it received a license from the Japanese regulator, the Financial Services Agency, to operate as an exchange.
The solution that the exchange develops with SBI will allow users to send remittances without worrying about market fluctuations, changes in exchange rates or any other problems associated with sending remittances. The solution will be specially focused to be a tool that can be used by companies in Japan that need to send large amounts of money overseas. FXCoin Senior Strategist Yasuo Matsuda said:
Until now, active cryptography has mainly been used for speculative purposes due to the magnitude of price movements …
To establish the foreign exchange market and expand the use of real demand, we will proceed with the demonstration experiment of domestic remittances and overseas remittances through XRP and finally global liquidity management, corporate finance and trade .
Will XRP adoption increase?
The solution developed by FXCoin, SBI and its partners responds to an internal demand for crypto-based products. According to the Nikkei local media report, many companies in Japan have stayed away from crypto payment solutions due to the risks associated with this asset class. Volatility is the main detractor.
Apparently, FXCoin has the support of a number of companies who are committed to using the solution if the testing phase is successful. In this way, there could be an increase in XRP adoption and a positive impact on its performance in 2021.
As reported by CNF, FXCoin announced in late July the launch of an XRP-based exchange to protect its users from sudden price fluctuations. At the time, it became known that SBI Holdings had made an investment in the exchange.
SBI Holdings is one of the biggest supporters of Ripple in Asia. Yoshitaka Kitao, CEO of SBI Holdings, is seen as a key player in the partnership between the financial institution and the payment solutions company. Kitao sits on Ripple’s board of directors. Recently, Ripple announced that it will make a new investment in MoneyTap, the money transfer application developed in partnership with SBI Holdings.
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