Ripple initiated three cryptocurrency exchanges as its "preferred partners" for the transaction with its xRapid payment service, which uses XRP cryptocurrency.
Announced Thursday, Bittrex, Bitso and Coins.ph will now serve as a "preferred digital exchange exchange" Ripple as part of its efforts to build the XRP ecosystem.
Cory Johnson, a strategist of Ripple's core markets, told CoinDesk that the company is essentially encouraging all of its customers in the United States, Mexico and the Philippines to use these three bags, respectively, to send funds using its xRapid service.
"So in the US we say the gold standard, our official partner is Bittrex, so any bank can go to Bittrex and have guaranteed liquidity on the spot, we exchange their dollars for XRP, we move to Mexico in Bitso, our partner favorite, and we convert [to Mexican pesos]"he said in an interview.
Financial institutions would need to have trade accounts to convert US dollars, or Mexican pesos or Filipinos, according to Johnson.
The three exchanges were chosen because of their XRP holdings, allowing them to provide higher levels of liquidity, he said, adding that "there are a lot of companies around the world that use XRP and what we are doing is identify three more [exchanges] that have a lot of XRP liquidity and direct more liquidity in their own way. "  While Ripple has only announced three exchanges so far, Johnson has said that other names will follow.
"The corridors on which we focus [are] organic … we want to concentrate on crowded corridors.We want to focus on places where there is a very lively XRP market, and we want to focus on places where we can have maximum value. "
Ripple needs to determine where these places are, he said. For example, he noted that Taiwan and the Philippines see large trading volumes compared to other international corridors, which means that Ripple could focus more attention on that corridor.
Rippling image via Shutterstock