Cryptocurrency startup FXcoin Ltd. and Japanese financial giant SBI Holdings have begun testing the use of XRP to settle corporate debts and credits.
FXcoin is conducting the experiment, which involves Sumitomo Corporation, a Japanese general trading firm, which settles debts and credits to other Sumitomo Group companies with XRP.
Sumitomo Corporation also “will enter into a future transaction with [FXcoin] to hedge XRP’s price movement and sell XRP a [FXcoin] on a specific date, “according to a press release translated by the cryptocurrency startup.
“This is expected to lead to the expansion of XRP denominated transactions in the future in the businesses of the expanding operating companies globally.”
FXcoin also believes that the experiment will lead to the creation of a cryptocurrency swap market listed by the company.
SBI is also partnering with FXcoin to test the use of XRP in the $ 6.6 trillion foreign exchange (FX) market. 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.
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.
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