Ripple has been stretching its technological capabilities far and wide. RippleNet, for instance, has expanded into global banks such as Santander and UBS. RippleNet’s fast, cheap and transparent cross-border payment solution is slowly eradicating SWIFT as the go-to technology for payments across boundaries.
Ripple announced yesterday, October 1st that their new product xRapid is officially available.
xRapid compared to xCurrent
XRapid unlike its predecessors such as xCurrent utilises XRP as the base unit of transfers. The pilot of xRapid was in May where the participating institutions saw a saving of 40 to 70 per cent on what they pay when using traditional methods to transfer payment. The payment also took only 2 minutes as compared to the 2-3 days in methods such as SWIFT.
The technology of xRapid is bound to create waves as it eliminates the need for pre-funded Nostro accounts when executing cross-border payments. The reason is xRapid helps source the liquidity from XRP on exchanges around the world.
One of Ripplnet’s customers MercuryFX has benefited tremendously from using xRapid. Alastair Constance, CEO of MercuryFX explained, “MercuryFX has been working closely with Ripple for more than a year to bring the power of RippleNet to our customers. In pilot tests, we saw the benefits of xRapid, and we’re excited to roll commercial payments out within the quarter. The time to replace slow, expensive payments architecture is now because the need for global access to smooth-flowing capital has never been so acute.”
XRP was seen to soar up in price following the rollout of xRapid and America’s top 10 bank PNC joining Ripple as one of its banking partners.
How does xRapid work?
If a bank wants to send U.S Dollars to European Euros, the US Dollars are first converted to XRP tokens thanks to pre funded local currency accounts used to convert US Dollars into XRP in a cryptocurrency exchange. The XRP is then moved overseas to Europe which will be converted through a local cryptocurrency exchange into Euros.
According to CoinMarketCap XRP at the time writing is in the green at $0.561618 with a market capitalization of $22,428,441,137.