In what can be described as a quantum leap by the crypto, Ripple has come out to say that xRapid is now commercially available. xRapid utilizes the crypto XRP to engage in foreign transactions. This development is the first among its kind in which XRP will gain approval by financial services firms for commercial application. Brad Garlinghouse who is Ripple’s CEO made this public at the annual Swell Conference organized by Ripple.
3 Financial Institutions Now to Use xRapid
Three financial institutions are set to shoot Ripple’s crypto to the live front soon. Ripple is dedicated to ensuring seamless cross-border payments and on Monday, it announced ecstatically that xRapid is now “Commercially available.” Instructive to note is the fact that xRapid utilizes the XRP crypto for its international transactions.
According to Ripple, the three financial institutions that would be using xRapid are Corporate Federal Credit Union, Mercury FX, and Caulix. This announcement was made by Ripple’s CEO at the annual Swell Conference organized by the crypto firm. While exchanging views, the Vice President of products for Ripple, Asheesh Birla, said:
“I’m really excited to bring the product into the market at a time when there is a lot of skepticism about digital assets and their real use case…Here’s something where we’re finding a ton of value and providing a ton of value to our customers using digital assets to move money more efficiently.”
A Distinction between Ripple & XRP
Ripple has come out to distinguish between XRP and itself. In its explanation, Ripple claims to be a private company while according to it, XRP is “the native digital currency of an open source network known as XRP Ledger.” This distinction became necessary because of the common confusion many people have about the two.
Out of the one hundred billion tokens belonging to XRP, at least 60% is owned by Ripple. However, Ripple has chosen to lock up fifty-five billion of the tokens in an escrow account. According to the company, the reason for doing this is to assure customers that the supply of XRP is guaranteed any time, any day. Of course, that would mean that only 13% of XRP is essentially available for Ripple that way.
XRP Going Live for the First Time
This is the first time financial services firms will be making use of XRP for commercial purposes. This is no doubt a major achievement for Ripple as it strives to ensure that cryptos with its blockchain technology become inducted as it were into financial mainstreams.
The business model of the company equally depends largely on financial institutions as it provides it a large chunk of the revenue accrued. It’s been a while now that Ripple has been testing the waters with Mercury FX, Caulix, and other notable payment companies. In fact, it tested its product with MoneyGram and Western Union which are both giants in money transfer.
Be that as it may, Ripple is yet to announce which bank would be spearheading xRapid. However, it has hinted that it may not be commencing with the big names.