Ripple’s xRapid Agreement

Marcin Iwański
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According to the press release, Ripple has signed an agreement with three new cryptocurrency exchange platforms for its cross-border payments settlement product – xRapid.

The new agreement is made with US-based Bittrex, which from now on will be the preferred digital exchange for transactions carried out in US dollars, also with Bitso which will be responsible for Mexican Peso and Coins.ph and Philippine Peso.

As we can find in the release,  xRapid payment flow will look like from the U.S. to Mexico:

  1. A financial institution that has an account with Bittrex initiates a payment in U.S. dollars via xRapid which is instantly converted into XRP on Bittrex.
  2. The payment amount in XRP is settled over the XRP Ledger.
  3. Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account.

xRapid’s cross-border payment product minimizes liquidity costs and provides lower transaction costs and the scalability of XRP digital content, as well as improving the speed at which transactions can be completed. But for xRapid to be most successful, there must be a healthy ecosystem of partners for sharing digital content across the globe,” says the company. With xRapid, payments can be transferred from one currency to XRP and back to another FIAT currency.

Financial institutions who took part in the first release of the xRapid platform, and tested payments between the U.S. and Mexico,  reported an improvement in transaction speed from 2-3 days to “just over two minutes.” and transaction savings of 40-70 percent.

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