After many months of speculation, Ripple’s product, XRapid has finally launched on Tuesday. For those who are uninitiated, XRapid aims to cut down the time taken to process cross-border payment as compared to conventional methods such as SWIFT.
For instance, it was widely reported that Bank of America, charges almost $30 to send domestic wire transfers and $35 for international ones. In contrast to that, Bitcoin which is not really known for its inexpensive fees, fares better as Bank of America charges nearly 300 times that of a Bitcoin transaction.
Commenting on this development, Alastair Constance, CEO and founder of MercuryFX said, “MercuryFX has been working closely with Ripple for more than a year to bring the power of RippleNet to our customers. In pilot tests we saw the benefits of xRapid, and we’re excited to roll commercial payments out within the quarter. The time to replace slow, expensive payments architecture is now because the need for global access to smooth-flowing capital has never been so acute.”
Last month we had reported that XRapid was all set to partner with three cryptocurrency exchanges namely, Bittrex, Bitso and Coins.ph, will be used to carry out transactions in the United States of America, Mexico and Philippines.
At the time a spokesperson for Ripple had told Crypto-News India, “With xRapid, businesses can source liquidity on demand with XRP. On-demand liquidity means quicker payments, no more tied-up capital ($5+ trillion trapped around the world right now), and no more reliance on the largest banks to do foreign exchanges (FX). For example, if a financial institution in Japan wanted to send money on behalf of a customer from Japan to Thailand, it would take several days and you’d be stuck paying a bunch of money to a correspondent bank who has a relationship with the bank you want to send the money to in Thailand. Alternatively, the financial institution could form a bilateral relationship with the bank in Thailand and be required to store a bunch of money at that bank. With xRapid, it no longer has to do either. In real-time, it can transfer money anywhere in the world. In this sense, XRP functions as a bridge currency to facilitate quicker transactions and allow payment providers to source liquidity on demand, instead of maintaining nostro accounts.”
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