Ripple’s xRapid moving to production “later this year”, says Cory Johnson after exchange partnerships
Ripple has begun making moves towards creating a global payments network using its products, as 3 more exchanges have signed up to be a part of the xRapid ecosystem. These exchanges are Bittrex, for xRapid transactions involving USD, Bitso and Coins.ph for Mexican Pesos and Philippine Pesos respectively.
The purpose of partnering with these exchanges is to offer services for converting XRP into fiat. This is used to achieve the on-demand liquidity demonstrated in xRapid. Moreover, this is a step towards Ripple building a “healthy ecosystem of digital asset exchange partners around the world”.
This means that the number of exchanges around the world that allow the sourcing of liquidity from xRapid will continue to increase, allowing a robust solution for moving large amounts of money.
xRapid payment flows, as demonstrated by David Schwartz at the Consensus conference earlier this year, occurs by utilizing XRP as a bridge currency. This means that USD or any fiat will be utilized to buy XRP on an exchange by a financial institution using xRapid. Then, the amount is settled over the XRP Ledger to the exchange on the receiving end. This is then converted into fiat almost instantly, and sent on local payment rails for remittance.
Companies that utilized the xRapid product claimed to see a 40-70% savings in costs of transferring money globally, as long as a significant improvement of the speed of settlement. Reportedly, xRapid settles in two minutes, a leapfrog result over existing solutions that take at least 1 day for settlements.
On the move, Cory Johnson, Ripple’s Chief Market Strategist, stated:
“Bittrex is one of the biggest names in digital asset trading in the U.S.