Since the start of 2018, Ripple has actively partnered with a host of financial institutions in order to test and promote its xRapid international settlement system. However, it has now come to light that moving forward, the platform will become even more efficient thanks to the help of three cryptocurrency exchanges that will make the firm’s native cross-border monetary transactions even faster.
About the platform
xRapid, Ripple’s native blockchain offering is designed to help transmit money across international borders in a near-instant fashion. However, what really sets this platform apart from other similar solutions is its ability to minimize high transaction costs — which are usually associated with conventional bank transfers.
As per a statement released on Ripple’s website, the company has stated that it has entered into a partnership with US-based cryptocurrency exchange Bittrex so as to facilitate faster USD transactions.
Similarly, for transfers pertaining to the Mexican and Philippine Peso, Ripple will employ the services of Bitso and Coins.ph respectively.
Additionally, a flowchart explaining xRapid’s native financial transactions has also been described on the company’s website:
“A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex. Following this, the payment amount in XRP is settled over the XRP Ledger. Finally, Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account.”
More on the Matter
When asked about why Ripple chose to partner with the aforementioned online exchanges, the company’s Chief Market Strategist, Cory Johnson, said:
“Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. That makes today’s announcement an important development for xRapid. We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.”
What comes of these major partnerships remains to be seen, but if Ripple’s recent trial studies are anything to go by, xRapid’s amazing transfer protocol can help users save anywhere between “40-70 percent in fees” (per transaction).