In a press release published on August 16, Ripple announced that they have teamed up with three firms, adding these cryptocurrency exchanges to its cross-border payments settlement system.
Ripple announced the partnership with US-based Bittrex, Mexican firm Bitso, and Philippine firm Coins.ph in their bid to create a healthy ecosystem for digital asset exchanges.
Ripple Goes Big With XRapid
— Cory Johnson (@CoryTV) August 16, 2018
The new partners will help enable the firm’s xRapid payments solution to move between XRP and the US dollar, Mexican peso and Philippine peso, respectively. Ripple explains that:
“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.”
The three exchanges were chosen because of their XRP holdings, which provides them with higher liquidity.
xRapid is Ripple’s liquidity solution for their blockchain-based real-time settlement system. xRapid was developed to help facilitate international money transfers between financial institutions. Corey Johnson, Ripple’s Chief Marketing Strategist said:
“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.”
While Ripple has only announced three exchanges, Johnson says more firms are soon to follow. He says that:
“The corridors we’re focused on [are] organic … we want to focus on busy corridors. We want to focus on places where there’s a very vibrant XRP marketplace, and we want to focus on places where we can have the most value.”
This week, crypto news outlets reported that Ripple is thinking of breaking into the Chinese market to speed up international payments using their xRapid payments solution.