XRP in action: Starting shot for Ripples xRapid
Ripple CEO Brad Garlinghouse has launched Ripples xRapid. The new system promises international payment services. The bank coin XRP plays an intermediary role. However, the Ripple price is losing some of its strength.
On October 1st, Brad Garlinghouse, CEO of Ripple, announced the launch of xRapid. At the Swell Conference in San Francisco, the company also confirmed existing partnerships.
According to Ripple, xRapid will make cross-border transactions cheaper and faster in the future. XRP serves as a bridge between different currencies. When using the platform, currencies are first exchanged in XRP and then sent to the recipient. At the receiving party, XRP is exchanged back into the corresponding currency. Thus, the platform promises cost savings of up to 70 percent compared to conventional payment transfers.
xRapid and Ripple Partners
CNBC reports that the product is currently used by three payment service providers. These are Mercury FX, Cuallix and Catalyst Corporate Federal Credit Union. Brad Garlinghouse told the news channel that he expects a big rush on the payment platform by the end of 2019. Dozens of banks dedicated to Ripple and XRP technology are expected to follow by the end of next year.
Attack on traditional payment system
Mercury FX and Cuallix are both payment service providers who already participated in the xRapid pilot phase of the project. Mercury FX plans to use xRapid for payment transfers between Europe and Mexico. Cuallix is also focusing on Mexico - but here it is payment services to the USA that the platform is intended to facilitate. The Catalyst Corporate Federal Credit Union also wants to use xRapid for cross-border payments. Brad Ganey, COO of Catalyst Corporate Federal Credit Union, explains:
"Traditional international payment processing does not meet today's expectations in terms of price, speed and ease of use. Blockchain technology, and Ripple's xRapid product in particular, solves all three challenges simultaneously. Catalyst Corporate will use the XRP digital assets through the technology platforms of our subsidiaries to immediately transfer money across borders on behalf of our more than 1,400 member cooperatives. We have signed a production contract and are currently expanding our plan."
Ripple not unrivalled
The company around Brad Garlinghouse is not alone in its efforts to facilitate international payment transactions (and to acquire them at the same time). With StellarX, the company currently has a promising competitor dedicated to the same goal.
Ripple course shows little reaction
Surprisingly, the Ripple price did not continue to react to the announcement that the token would soon establish itself in the financial sector. At 0.56 US dollars, for example, the token lost almost four percent compared to the previous day. In the 7-day retrospect, however, it is still just under 25 percent plus. In the course of the month it looks even better. Here, the Ripple price has improved by a total of 65 percent.