The first day of Ripple’s Swell conference in San Francisco started with a major announcement. The blockchain startup revealed that its xRapid solution will go into commercial production and is being used by three customers. The XRP price rose briefly from around 0.54 to nearly 0.60 USD on the heels of the announcement.
xRapid is going into commercial production. @mercury_fx_ltd, @Cuallix and Catalyst Corporate Federal Credit Union will be the first to make on-demand cross-border payments on RippleNet using #XRP. https://t.co/dQ02J4vdBl
— Ripple (@Ripple) October 1, 2018
When Ripple CEO Brad Garlinghouse hit the stage at Swell yesterday, he shared that Ripple has seen tremendous customer growth year-on-year and has been signing up customers hand over fist. He then made the major announcement about xRapid, a development that was also detailed in a Ripple blog post.
Garlinghouse announced that xRapid is going into commercial production and is being used by three financial institutions: MercuryFX, Cuallix and Catalyst Corporate Federal Credit Union.
Ripple’s xRapid uses the cryptocurrency XRP for transactions. With this solution, financial institutions gain access to on-demand liquidity for cross-border payments, as xRapid eliminates the need for a pre-funded nostro account when making cross-border payments. As a result, cross-border payments can be made in minutes and at a lower cost.
Meanwhile, payment service providers MercuryFX and Cuallix previously participated in xRapid pilot projects. With commercial payments, MercuryFX will use xRapid in the Euro-Mexico payment corridor. Cuallix will use its Payllix and Cuallet platforms for individuals and families who want to send money home in the transfer corridor from the U.S. to Mexico. Catalyst Corporate Federal Credit Union will offer an xRapid-based cross-border payment service to its customers.
Alastair Constance, CEO and founder of MercuryFX stated in the Ripple release:
“MercuryFX has been working closely with Ripple for more than a year to bring the power of RippleNet to our customers. In pilot tests we saw the benefits of xRapid, and we’re excited to roll commercial payments out within the quarter. The time to replace slow, expensive payments architecture is now because the need for global access to smooth-flowing capital has never been so acute.”
After the XRP price slipped lower in yesterday’s trading, it turned higher on the heels of the xRapid announcement, climbing from a low of $0.5363 to $0.5958. Currently, the XRP price is hovering at $0.56.