XRP sees the use in financial institutions
After months of development, Ripple, a technology startup based in the United States (as you probably know), has finally released one of its most promising products, xRapid. For those not in the loop, xRapid is a service and product that makes cross-border payments more cost-effective and faster, declaring "liquidity sourcing" from XRP-supported exchanges worldwide.
As is already mentioned, the attractiveness of this service is its low cost and almost instant transaction speed, which is a godsend, compared to the slow and expensive transfer of cables and remittances of the past. For example, in the cryptosphere it has been widely reported that the Bank of America, one of the largest financial institutions in the world, charges $ 30 to send domestic transfers and $ 35 for international transfers. Compared to Bitcoin (BTC), which has no cheaper transactions (depending on the design), BoA commissions exceed 300 times what the BTC means of transport can entail.
Now, as revealed by a CNBC article on the subject, Ripple revealed that it intends to launch XRapid XRP-friendly today, on October 1, 2018, initially to three companies, which are Mercury FX, Cuallix and Catalyst Corporate Credit Union. . Reportedly, Brad Garlinghouse, CEO of fintech startup, made this announcement on the stage at Ripple's Swell event, which was previously handled by Ethereum World News.
According to CNBC, this is the first time that XRP, the cryptographic asset, will be used in a real business application by a financial services provider, which represents a milestone when it comes to the Ripple project development roadmap .
For now, only the three companies mentioned above will use xRapid, but Ripple would have tested its product with Western Union and MoneyGram money transfer giants at an earlier date, but it remains to be seen whether these two companies will jump on the fintech and asset wrap encryption. .
It was also through rumor mill that the Wall Street banks are examining Ripple, but no clear evidence or statements have been made on this subject since the startup explained that mainstream banks hardly adopt their own technologies since 39; beginning.
Status Quo V.S. Promising technologies
Nicolas Palacios, Ripple Chief Financial Officer, Cuallix member, spoke about the arrival of xRapid and its hope for encrypted assets, noting:
The promise of digital resources has always been faster, more efficient payments. That's why we started exploring xRapid for our Payllix and Cuallet financial services platforms, to help our customers whose livelihoods depend on the rapid and rapid dispatch of micropayments to Mexico. Now our customers can finally fulfill this promise,
The other partners expressed a similar sentiment, with Alistair Constance, CEO of MercuryFX, who told Fortune journalists that he was quickly convinced to pull the trigger to join xRapid after seeing the drastic reduction in commissions and time for the international transactions. The exact example he mentioned was when he sent $ 1,000 through the "status quo method", the SWIFT international payments network, and cashed from $ 40 to $ 75 in commissions on a transaction that took several days.
Seeing that xRapid offers payments, which can be completed in the time required to prepare coffee and at a ridiculous cost, it is obvious that Constance chose to opt for the high-tech option.
Interestingly, XRP, the de facto asset of the Ripple ecosystem, has indeed recorded a loss in the last 24 hours, despite having gained a 5% rise after the CNBC article on the release of xRapid . At the time of writing, a single XRP is worth $ 0.567 a piece and is down 4.3% on the previous day, according to CoinMarketCap that is.
Do not make mistakes, despite the lack of significant positive price actions today, the success of Ripple's launch of the xRapid program shows that the fintech startup still intends to revolutionize the way the financial system works, even if all the odds are against Ripple.
As put by Asheesh Birla, senior vice president of Ripple's product:
We've had a lot of adoption, our sales team is out there now closing more than two offers a week on our product suite, and so it's only been a better and really important year for Ripple.