Ripple’s much-touted xRapid product is now available for commercial use. Three financial firms – Mercury FX, Cuallix, and Catalyst Corporate Federal Credit – are set to use the technology. The development marks the first time that the Ripple token (XRP) will be used in a commercial application.
The xRapid Release
xRapid was announced at the Swell annual conference in San Francisco 2018. This was the same conference where former President Bill Clinton would note the endless possibilities that DLT had to offer wider society. xRapid will mean that international transactions can take place in minutes, which is a new paradigm for the banking sector where transfers can take days and weeks. However, banks are still reluctant to use Ripple technology right now. According to Ripple Senior VP Asheesh Birla –
“Banks worldwide are not first adopters of the xRapid product, but we are seeing a lot of financial institutions in general and payment providers moving forward with that product.”
Who is Ripple?
Ripple is a corporate entity that owns 60% of all XRP tokens. However, the company claims to have access to only about 13% of the currency. This is to ensure that there is always a certainty of XRP supply so that liquidity can be provided. Ripple is most often described as a Real Time Gross Settlement System (RTGS) that is perfectly suited to settling payments between banks and financial institutions, both domestically and internationally. It is one of the fastest proven cryptocurrencies. However, it has experienced a large amount of criticism for its corporate nature and pre-mine process.
Other Ripple products include xCurrent and xVia. Ripple does not have many competitors, as it is the only network whose market includes large banks and payment processors. Bitcoin and decentralized cryptocurrencies are aiming to facilitate payments primarily between people and small businesses, and Stellar is focusing on banking the unbanked.
What is xRapid?
xRapid provides a way for payment providers and financial institutions to minimize liquidity costs for cross-border transactions. These costs are often quite steep, particularly when dealing with payments into emerging markets. xRapid will drastically reduce the capital requirements for liquidity. By utilizing the Ripple token (XRP) to provide on-demand liquidity, costs are reduced, which facilitates real-time payments in merging markets. xRapid is built for large-scale financial commercial use, like nearly all Ripple products.
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.