Ripple’s xRapid goes live with three financial firms
According to a Reuters report, three companies have now decided to use Ripple’s much-publicized product xRapid to facilitate cross-border payments. This much-anticipated offering from Ripple aims to revolutionize the global remittances market. It helps customers and organizations to decrease the cost of payment transactions.
According to the report, the San-Francisco-based financial technology firm, a large holder and promoter of XRP, said its platform for cross-border payments, called xRapid, is now commercially available and that it had signed up firms Cuallix, MercuryFX and Catalyst Corporate Federal Credit Union as clients.
Speaking on this latest announcement, Alastair Constance, MercuryFX CEO and founder said, “In pilot tests, we saw the benefits of xRapid, and we’re excited to roll commercial payments out within the quarter.”
MercuryFX, which helps clients send and receive international payments; and Cuallix, which facilitates remittances between the U.S. and Mexico; had previously announced pilots using xRapid.
This latest announcement comes when more and more companies are trying to utilize the potential of blockchain for facilitating monetary transactions and securities settlement. But the fact remains that only a few large-scale projects have seen the light of the day.
Catalyst Corporate Federal Credit Union, which provides a range of financial services to around 1,400 credit unions, primarily in the western and southwestern U.S., is a new client for Ripple. A number of other financial bigwigs have trialed xRapid in the past, including Western Union, MoneyGram, Cambridge Global Payments, and IDT.
According to an AMB Crypto report last month, Ripple executive Sagar Sarbhai revealed that XRP had piloted with 12 banks before the product was created. Sarbhai, Ripple’s head of government and regulatory relations for APAC and the Middle East, said the participating banks were based in different parts of the world.
In an interview with CNBC earlier this year, Sarbhai gave an insight into the working of xRapid:
“Let’s take the case that you send the system US dollars … And it converts to XRP, moves the XRP into Mexico and then a local exchange in Mexico converts that to Mexican pesos and payout. The whole process takes just a matter of seconds and is very efficient as compared to the conventional system today. It cuts down the amount of friction needed to open up accounts in new countries, having pesos and so forth. So, we are really excited about xRapid,” he said.
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