Ripple has appended 3 cryptocurrency exchanges to xRapid payments solution, its product, as per the press release published on August 16.
Now partnered with Bittrex, Mexican Bitso, and Philippine Coins.Ph cryptocurrency exchanges, Ripple has started an initiative to build a “healthy” ecosystem of digital asset exchange.
This initiative has been started with the plan in mind that these exchanges will enable Ripple’s payments solution i.e. xRapid to move between XRP and U.S.dollars, Mexican pesos, and Philippine pesos.
In an official statement, Ripple explained the operational principle like this:
“A financial institution (FI) that has an account with Bittrex would initiate a payment in U.S. dollars via xRapid, which instantly converts into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger, then Bitso, through its Mexican peso liquidity pool, instantly converts the XRP into fiat, which is then settled into the destination bank account.”
XRapid, is a liquidity solution by Ripple. It’s their solution of real-time gross settlement system for facilitating, international fiat transfers between financial institutions.
Cory Johnson, Ripple’s Chief Market Strategist officially stated:
“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.”
In May, Ripple conducted a pilot of xRapid with participant financial institutions claiming to transaction savings of 40-70 percent for tested payments between U.S. and Mexico. They also added that the transaction time reduced exponentially from a matter of 2-3 days to approx two minutes.
Although after establishing product performance reference, David Schwartz, Ripple’s chief cryptographer exclaimed that it would be long before banks deploy blockchain based solutions to process international payments, citing low scalability and privacy problems as probable hurdles.
Earlier this week, cryptocoinspace reported that Ripple is trying to enter the Chinese market to speed up international payments with blockchain technology.