The price of Ripple (XRP) has been increasing over the last couple of days, and the increase is most commonly attributed to SBI’s testing of Ripple’s xRapid, and the release of a report that was incredibly bullish for XRP.
xRapid is a payment processor designed specifically for corporations and large financial institutions who want to maximize liquidity. xRapid uses XRP for cross-border transactions as a base currency.
Why the increase?
SBI Holdings are a huge Japanese conglomerate who have taken a strong interest in cryptocurrency, making large investments across the board. Ripple has been able to enter the Japanese Forex market (among the biggest in the world) due to partnering with SBI, who are trialing xRapid. xRapid claims to save 40-70% on cross-border fees and the settlement times are in minutes instead of days.
On the evening of August 1st, JPY (Japanese Yen) and KRW (South Korean Won) to XRP trading pairs saw a large spike in trade volume. Subsequently, the price of XRP underwent a 6% increase from $0.42 to $0.45 in under three hours.
The SBI Holdings financial report was released on July 31st, generating some insights. They are building their digital asset ecosystem and appear to be expanding on all fronts. Ripple was listed under remittances in the report. Ripple is being used in a large number of SBI Holdings business ventures. Arguably the biggest news from the report is that Western Union, MoneyGram, and Cambridge FX are promoting XRP for remittances. This will provide huge exposure.
Ripple is currently trading at $0.44, so it is still up considerably since the spike. The SBI Holdings report was incredibly bullish. More details on the report and its relationship to XRP is available from the XRP Research Center. SBI Holdings, a huge financial firm, is officially backing XRP on multiple levels.
Good news for Ripple
This can only be an indication of good news for Ripple, who has had quite a difficult time getting listed in Western exchanges. Ripple is currently involved in their third security lawsuit, and Coinbase has opted to ignore XRP, despite its massive market cap. As a result, they have been forced to enter the Indian and Japanese markets for increased exposure. But given that SBI already has significant financial partnerships and market penetration, they are sure to carry Ripple with them.
SBI Remit launched the first remittance service using xCurrent with Thailand’s SCB. SBI also recently launched the world’s first bank-backed cryptocurrency exchange, VCTRADE, in Japan. xCurrent is an enterprise software solution for banks to immediately settle cross-border payments with end-to-end tracking.
American Express is also officially using Ripple’s xCurrent as of August 2nd. And on July 31st, the same day that the SBI report was released, new crypto exchange DCEX announced it would be using XRP as an exclusive base currency. More good news for Ripple.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.