Ripple has partnered with three crypto-currency exchanges to leverage its XRP-based xRapid payment platform for transactions. According to a statement released on Thursday, Bittrex, Bitso and Coins.ph will act as “preferred”exchanges for xRapid transactions in US dollars, Mexican pesos and Philippine pesos.
According to the statement on Ripple’s corporate blog, the three crypto-currency exchanges have entered into an agreement to use xRapid and thus the XRP token for cross-border transactions. Bittrex, Bitso and Coins.ph are said to be a part of Ripples Preferred Digital Asset Exchanges as part of building the XRP ecosystem.
“Bittrex is one of the biggest names in digital asset trading in the US. The same goes for Bitso in Mexico and Coins.ph in the Philippines. This makes today’s announcement an important development for xRapid “ , said Cory Johnson, Chief Market Strategist at Ripple.
“We have already seen several successful xRapid pilot projects. If we bring the product from beta to production this year, we can provide financial institutions with the convenience and security that their payments will move seamlessly between different currencies. “
Ripple explained that financial institutions holding an account on one of the exchanges listed above will now make “preferred” payments via xRapid to make cross-border payments in the three currencies. The condition is that the financial institutions should have accounts on the stock exchanges to exchange US dollars or Mexican or Philippine pesos. According to Johnson, the three exchanges were selected on the basis of their XRP holdings and their high level of liquidity.
For example, the process of a transaction should look like this:
- A financial institution that has an account with Bittrex initiates a payment in dollars via xRapid, which is immediately converted to Bittrex in XRP.
- The payment amount in XRP is sent via the XRP ledger.
- Bitso – through its Mexican Peso Liquidity Pool – converts the XRP immediately into Fiat, which is then settled to a destination bank account.
In May, Ripple announced that initial xRapid pilot projects have shown that the payment solution saves on an average 40-70% of the cost of traditional transactions, revolutionizing cross-border payments.
Ripple is known to have a long list of financial institutions and payment service providers using the RippleNet network. However, while the majority use the product xCurrent, which does not use the XRP token, so far there have been 10 financial institutions and payment service providers who use the product xRapid and thus the XRP token in some way.
Among the companies that test xRapid include Cambridge Global Payments , Currencies Direct, MoneyGram , IDT Corporate , Mercury FX , Viamericas and Western Union . Companies that use xRapid productively to make cross-border payments are Cuallix, SBI Vitual Currencies and Zip Remit.
Ripple’s share price has risen + 7.05% over the last 24h to a price of $ 0.31 per XRP. With a market capitalization of just under 12.17 billion dollars, XRP continues to rank third amongst the largest cryptocurrencies in the world.