Ripple Partners With Three Crypto Exchanges as Part of XRapid Solution
A recently published press release revealed that the cryptocurrency Ripple has added three new crypto exchanges to its cross border payments system product, xRapid.
Ripples xRapid is a solution to the payment transfer delay and the high currency conversion rate between different countries. The company is constantly making efforts to add more and more cryptocurrency exchanges partners in its digital assets ecosystem so as to make them healthier. By doing so, global payments system can be made more effective and the real potential use case of Blockchain technology can be implemented. To make this possible, Ripple has joined hands with different countries and their cryptocurrency exchanges. Ripple has partnered with Bittrex in US, Bitso in Mexico and with coins.ph in Philippines.
This helps Ripple in converting one currency - into XRP (Ripple's digital asset) - and back into another currency quickly and efficiently. These partnerships with different countries' cryptocurrency exchanges enables Ripple's xRapid move between XRP and US dollars, Mexican pesos, and Philippine pesos respectively.
Ripple explained the operational principle of xRapid payment flow from the U.S. to Mexico:
1.) If a financial Institution has an account with Bittrex (US based cryptocurrency exchange ), then that financial institutions will initiate payment in US dollars via xRapid.
2.) xRapid will instantly convert dollars into XRP in Bittrex.
3.) After US dollar being converted into XRP and settled over XRP ledger, Bitso uses its Mexican peso liquidity, to convert XRP into fiat money and transfer it into bank account.
"We would be moving from Beta to production this year, and these partnerships with exchanges will benefit financial institutions with the comfort and assurance that their transfer of the payments across different currencies will be moving more seamlessly."
Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. Therefore, this announcement is of great importance to Ripple as well as these exchanges.
Recently Ripple arranged a pilot demo of xRapid platform, a test session where it invited many financial institutions to participate and test the payment speed and transaction efficiency between US and Mexico. The Pilot reports of xRapid platform showed that these methods enabled transaction saving by 40% and improved the transaction speed considerably. Previously, it took 2-3 days for money transfer and with xRapid, it took only 2 minutes.
Acknowledging these improvements Ripple Chief Market Strategist Cory Johnson said:
David Schwartz claimed in a recent interview that banks are unlikely to be convinced of blockchain process being utilized for international payments due to their privacy concerns and low scalability.