It was a good year for the start-up company RippleNet. The firm supports the cryptocurrency Ripple XRP and works in the field of the faster transactions since its beginning. The ultimate goal of the crypto company is to ensure quick money transfers between financial institutions and to ease the processes related to them. Ripple represents a global network with contracts in over 40 countries, their homepage says, and on six continents.
Now, RippleNet launched a new tool, directed into the same perspective. It is called xRapid and since the beginning of October, it is already live and ready for commercial use. The product is powered by the cryptocurrency of Ripple XRP and it is supposed to execute cross-border and transparent payment. What exactly is xRapid, the company explains in their press release, published on the site yesterday:
xRapid eliminates the need for a pre-funded nostro account when executing a cross-border payment. It sources liquidity from XRP on exchanges around the world. As a result, cross-border transactions occur in minutes and at a lower cost compared to traditional methods, which take days and incur high foreign exchange fees.
In other words, xRapid would suspend the need for a pre-funded capital in the prior currency for conducting international transfers. Currently, if a customer wishes to do a payment from one currency to another, the bank would have to possess preliminary assets in order to execute the conversion and consequently process the transfer. With xRapid though, the whole procedure would go instantly, or at least for a few minutes, due to the support of the cryptocurrency exchanges, which are traditionally faster than classical payment organizations.
xRapid has already moved into production with ‘multiple clients’, the announcement reads, among which we see the names of MercuryFX, Cuallix, and Catalyst Corporate Federal Credit Union, a currency exchange, a payment system similar to Visa and Mastercard and a cooperative financial institution.
Since the release of the new product, Ripple XRP made a substantial surge to over $ 0.60 USD. At the moment, it is circulating around $ 5.6 USD and it is defined by major exchanged as a ‘strong buy’. Anyhow, the San-Fransisco based company aims primarily to faster and cheaper cross-border transactions and its genuine ambition is to take over the market from SWIFT.