Ripple names exchange partners for xRapid payments between the United States, Mexico and the Philippines.
Global blockchain company Ripple has revealed a list of three “preferred” digital asset exchanges for US and international customers conducting transactions using the firm’s cross border payments solution, xRapid.
xRapid processes international payments at high speed with minimal liquidity and transaction costs using XRP. The XRP token is an independent digital asset developed on an open-source digital ledger, not by Ripple Labs.
“For xRapid to be most successful, there needs to be a healthy ecosystem of digital asset exchange partners around the world,” according to a press release on the company’s Insights blog. “These exchanges allow xRapid payments to move from one currency – into XRP – and back into another currency quickly and efficiently.”
US-based Bittrex exchange will act as the company’s preferred partner for xRapid transactions in US dollars, while Mexico’s Bitso and the Philippines’ Coins.ph will be the recommended exchanges in those countries.
Ripple provided a breakdown of how an xRapid payment flow, sent from the US to Mexico, would work.
Firstly, a financial institution that has an account with Bittrex initiates a payment in US dollars via the xRapid platform which is instantly converted into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger. Bitso via its Mexican Peso liquidity pool, instantly converts the XRP into fiat, which is then settled into a destination bank account.
Ripple added that the company has already successfully completed a number of xRapid pilot transactions and there are plans in place to move the product from the beta phase to production later this year.
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“In the US we’re saying the gold standard, our official partner is Bittrex,” Ripple chief markets strategist Cory Johnson told CoinDesk. “So any bank can go to Bittrex and have guaranteed liquidity on the spot, trade their dollars for XRP, zip over to Mexico to Bitso, our preferred partner there, and convert [to Mexican pesos].”
In May, results from xRapid trials discovered savings of 40%-70%, compared to the typically-employed foreign exchange brokers and an average payment time of just two minutes, compared to the usual two or three days.
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