Ripple XRP Future

Ripple Partners with Bittrex and 2 More Exchanges for xRapid Payments. Here Is What it Means for XRP

In an announcement only a few hours old, the Ripple team has informed the cryptoverse about new partnerships with the three exchanges of Bittrex, Bitso and Coins.ph. The purpose of these partnership is to further the efficiency of Ripple’s xRapid payment solution. Therefore, let us fast define xRapid:

xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.

This liquidity is provided through XRP. The digital asset is ideal to enable real-time payments by offering a highly efficient, scalable and reliable option for cross-border payments. Remember the XRP ledger is fast (3.3 seconds per transactions) and cheap (approximately $0.0004 per transaction).

So what does it all mean for cross border transactions?

It means Bittrex, Bitso and Coins.ph will be used as intermediary exchanges for the fiat currencies of the USD (Bittrex), Mexican Peso (Bitso) and Philippine Peso (Coins.ph) against XRP during cross border transactions. No more need for the expensive middle man in the form of an expensive forex broker. The team at Ripple further explained how it will all work in the case of a transaction from the US to Mexico:

  1. A financial institution, that has an account with Bittrex, initiates a payment in US 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

We also need to remember that pilot tests of xRapid by Ripple had proven that financial institutions save 40 -70% compared to the traditional way of doing things. The transaction also took an average of 2 minutes instead of the long 2 – 3 days.

What then does this mean for XRP?

The sourcing of instant liquidity through XRP via these three exchanges will mean that there will be constant demand for the digital asset on a daily basis since cross-border transactions are 24 hrs, 7 days a week, 365 days a year. We know when an asset quickly changes ‘hands’, its demand goes up. As a result, so does its value. Therefore, the days of XRP being valued at under half a dollar could soon be over with this news development.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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