Ripple and XRP have been making a lot of headlines recently due to all kinds of achievements and the firm’s massive efforts to boost the whole XRP ecosystem.
Ripple is also pushing for the mass adoption of the digital asset XRP.
Testing the use of XRP in the foreign exchange market
Now, it’s been revealed that the Japanese financial giant SBI Holdings is gearing up to test the use of XRP in the foreign exchange (FX) market.
The Daily Hodl reveals info from the financial outlet Nikkei and notes that the pilot will use the coin in order to execute cross-border currency swaps.
It’s been also revealed that the test is designed to determine whether the speed of XRP can be used as a bridge asset in order to lower the risk of price volatility that can occur while a currency is traded for another.
This can also determine potential savings on fees that are associated with a certain transfer.
In order to perform the trial, SBI teams up with the crypto startup FXcoin Ltd.
The Bank for International Settlements notes that trading in the global FX markets reached $6.6 trillion per day in April of 2019.
“Foreign exchange swap volumes are estimated to account for approximately half of the FX market,” as the Daily Hodl notes.
Just to refresh your memory, Ripple and SBI are longtime partners, and SBI invested in the payments company back in 2016.
Check out the original article by the Daily Hodl in order to learn more details about the issue.
Ripple makes efforts to fuel XRP remittance project
Recently it’s been revealed that Ripple has purchased tens of millions of dollars worth of XRP in the past three months in order to fuel its cross-border payments product, On-Demand Liquidity (ODL).
Check out our previous article in order to learn more details.
