xRapid is Ripple’s brainchild, which is designed to improve international payments by doing away with the necessity of a pre-funded Nostro account. The product is believed to source liquidity from XRP on exchanges across the world, thus making cross-border transactions cheaper and faster in comparison to traditional methods.
The Ripple team noted on the partnership:
In 2018, RippleNet has dramatically expanded its reach and network. This year we’ve seen massive customer growth quarter over quarter, signing an average of two production customers per week. RippleNet has also become a truly global network, powering faster, cheaper and more transparent cross-border payments to over 40 countries and six continents. Today, RippleNet takes another step forward to change the way money moves.
Successfull pilot phase
xRapid had initially kicked off its pilot phase in May, a feat that saw the participation of several payment providers and financial institutions, including Cuallix and MercuryFX. According to the participants during this pilot phase, they realised substantial savings of 40-70% and an exemplary transaction speed of just over two minutes, a tremendous improvement from the average 2-3 days that is commonplace with remittance payments.
Presently, Cuallix manages the key remittance corridor from the United States to Mexico, while MercuryFX is expected to take over the deployment of xRapid from Europe to Mexico. According to the statement, Catalyst Corporate Federal Credit Union, a corporation that serves both member and client credit unions in the United States, will utilise xRapid in creating a brand new cross-border payment service.
Building a healthy digital asset ecosystem
This new development from Ripple comes on the backdrop of a recent partnership in August with three cryptocurrency exchanges: Bitso, Bittrex, and Coins.Ph. The crypto firm had noted that this would help build a healthy ecosystem of digital asset exchange. These parties will make use of xRapid in moving between XRP and Mexican Pesos, U.S. dollars, and Philippine Pesos respectively.
Increase in XRP
Ripple (XRP) has recently seen a significant increase in its token prices, having surpassed Ethereum (ETH) in terms of market capitalisation in some periods last week and becoming the second largest crypto after Bitcoin on September 21 and 26. Although there was no significant price movement today, it appears XRP will continue to do well by accumulating more partnerships.