By Gaurav S. Iyer, IFC Published : November 16, 2017
On Thursday morning, Ripple prices experienced a spontaneous surge that sent XRP skyrocketing to $0.262250. This 24.41% increase in the Ripple to USD exchange rate happened in under an hour.
If you’re wondering what could have sparked such a rally, consider this: American Express Company (NYSE:AXP) just announced that it will use Ripple for settling FX transactions between the U.S. and U.K.
“We’ve already seen evidence that blockchain technology is playing a transformational role in the way customers are served,” said Greg Keeley, Executive Vice President of Global Corporate Payments at American Express.
“Not only does this partnership with Ripple help decrease the time it takes for international transactions to be processed, it can make our transactions more effective for our customers,” he added. (Source: “American Express Joins RippleNet – Giving Visibility and Speed to Global Commercial Payments,” Ripple, November 16, 2017.)
This is a major step for Ripple.
Granted, the company has accumulated 100 partnerships with medium-sized financial firms. But American Express exists on a far larger and more visible stage than Ripple’s other partners.
Securing such a high-profile partner for “RippleNet”—the company’s cross-border settlement service—will no doubt help their marketing department.
We could see a rapid increase in interest from other financial institutions because, well, herd mentality exists even in the upper echelons of finance. (Or maybe especially at the upper echelons of finance.)
This is precisely the kind of fundamental growth that we’ve seen Ripple deliver on a consistent basis, and it’s also why we are so bullish on the value of XRP tokens.
But this isn’t positive news for Ripple alone. American Express stands to benefit from faster transaction times and lower costs. Also, it doesn’t hurt that AMEX is seen collaborating with a leading blockchain company, since blockchain is the hottest corner of fintech.
Daily Ripple (XRP) Chart
It would be foolish to expect this one piece of news to launch Ripple prices sky-high. That said, Ripple needed something to kick start a rally.
If the company can follow this partnership with a stream of others, we could see XRP accelerate to our $2.00 Ripple price prediction even more quickly than we imagined.