Ripple has added three cryptocurrency exchanges to its cross-border payment settlement product, according to a press release published on August 16th.
Ripple collaborated with Bittrex, Mexican Bitso and Philippine Coins.Ph. Cryptocurrency trading platforms in its initiative to build a "healthy" digital resource exchange ecosystem.
The new partners will allow Ripple's xRapid payment solution to move between XRP and US dollars, Mexican pesos and Philippine pesos respectively. Ripple explained the operating principle like this:
"A financial institution (FI) that has an account with Bittrex would initiate a payment in US dollars via xRapid, which instantly converts to XRP on Bittrex. XRP is regulated in the XRP register, so Bitso, through its Mexican weighted liquidity pool, instantly converts XRP to fiat, which is then deposited in the destination bank account. "
XRapid is a liquidity solution for Ripple, a real-time gross settlement system based on blockchain, which was developed to facilitate transfers of international fiat between financial institutions. Ripple CEO Chief Market Strategist Cory Johnson said:
"We have already seen several successful xRapid pilots and as we move the product from beta to production by the end of the year, these exchange partners will allow us to provide financial institutions with comfort and assurance that their payments will move seamlessly between different currencies. "
In May, the financial institutions that participated in the pilot project of the xRapid platform, which tested payments between the United States and Mexico, recorded a 40-70% transaction savings. In addition, participants noted an improvement in transaction speed from 2-3 days to "just over two minutes".
Although the tests showed solid performance, Ripple's chief cryptographer David Schwartz said that banks are unlikely to deploy blockchain to process international payments, citing problems of low scalability and privacy.
At the beginning of this week, Cointelegraph reported that Ripple is considering the possibility of entering the Chinese market to accelerate international payments with blockchain technology. Jeremy Light, vice president of strategic accounts of the European Union at Ripple, said that "China is definitely a country and a region of interest".