Ripple’s XRP has long been criticized s a token without any utilities, but the new partnership with crypto exchanges is a step forward in the development of a healthy XRP ecosystem.
Streamlining international fiat transfers via xRapid
Ripple, the creator of XRP, chose Bittrex, Bitso, and Coins.ph all of which will act as preferred exchanges that will provide liquidity on the spot by trading U.S. Dollars, Mexican Pesos and Philippines Pesos for XRP.
American crypto exchange Bittrex will oversee transactions between U.S. dollars and XRP.
Bitso will serve as an exchange that will streamline trade of Mexican pesos for XRP and Coins.ph will facilitate the same for Philipines Pesos.
“A financial institution (FI) that has an account with Bittrex would initiate a payment in U.S. dollars via xRapid, which instantly converts into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger, then Bitso, through its Mexican peso liquidity pool, instantly converts the XRP into fiat, which is then settled into the destination bank account,” Ripple said in an official announcement.
xRapid facilitates cross-border payments
xRapid is Ripple’s liquidity solution that uses the crypto XRP in order to facilitate real-time cross-border payments.
Ripple chose these three exchanges and noted that their XRP holdings would provide higher levels of liquidity.
More important financial institutions have already implemented the xRapid solution.
Cory Johnson who is Chief Market Strategist at Ripple said that there have been a few successful xRapid pilots already.
He also said that as the team moves the product from beta to production by the end of 2018, these exchange partners will allow Ripple to provide financial institutions with the comfort and assurance that their payments will be moving seamlessly between different currencies.
Earlier this year a report proved that there had been a reduction of the transaction cost to 40 to 70% using the xRapid platform.
The report also showed that the transaction time also dropped from 2-3 days to 2 minutes.