On Oct 1st, Ripple announced that its most awaited real-time cross-border payment platform xRapid is commercially launched and will be used by three financial institutions including MercuryFX, Cuallix, and Catalyst Corporate Federal Credit Union.
Blog post reads,
“RippleNet is now providing on-demand liquidity to financial institutions for cross-border payments using the digital asset XRP. xRapid, the Ripple product powering these transactions, is commercially available and moving into production with multiple customers, including MercuryFX, Cuallix, and Catalyst Corporate Federal Credit Union.”
How xRapid works
A financial organization associates to digital asset exchanges in both the source and destination corridors. The source money is converted into XRP which gives the vital liquidity to influence the final payment, and afterward in seconds that XRP is converted into the destination currency in the second digital asset exchange. When this transaction happens, the assets are conveyed on the local rails of the destination nation for payout. The transaction is followed end-to-end, and the outcome is a cross-border payment that is less expensive and quicker than the previous methods.
Ripple’s xRapid platform is intended to speed-up the worldwide payments via digital asset XRP without the need to make a pre-financed Nostro account. The platform is said to accomplish the liquidity through the Ripplecoin (XRP) and will provide less expensive and faster cross-border transactions than customary methods, which takes several days and acquire high foreign exchange charges.
xRapid started the experimental trial in May this year, with various financial establishments and payment suppliers including MercuryFX and Cuallix taking an interest in the preliminary. Members participated in the trial phase, detailed that transaction through the xRapid platform can spare 40%-70% of transaction charges, and the average speed of the transaction took just over two minutes, compared to today’s average of two to three days.
Both Cuallix and Mercury FX are payment providers, while Catalyst Corporate Federal Credit Union is a budgetary establishment that serves cooperative financial institutions over the United States.
As of now, Cuallix is overseeing key settlement channels from the US to Mexico. As indicated by the announcement, Catalyst Corporate Federal Credit Union, which serves more than 1400 US clients and credit associations, will likewise create new cross-fringe payment benefits through xRapid on behalf of its members.
This year, in August, Ripple banded together with three cryptographic money exchanges, Bittrex in the US, Bitso in Mexico, and Coins.Ph in the Philippines, as a component of Ripple’s objective to set up a “sound” digital transaction framework. The three exchanges will utilize xRapid to change over among XRP and the US dollar, the Mexican peso and the Philippine peso.
The xRapid product is fundamentally focused on banks transferring international payments, especially in emerging markets. Ripple’s Garlinghouse believes that many big financial institutions will use XRP by the end of 2019.