Ripple collaborates with three cryptocurrency exchanges with the purpose of building a “healthy” ecosystem of digital asset exchange. The newsly added crypto exchanges include Bittrex, Bitso, and Coin.Ph.
17 August, AtoZ Markets – Ripple, the third biggest cryptocurrency in the world by market cap, has reportedly added three crypto exchanges to its cross-border payments settlement product.
Ripple Collaborates with Three Cryptocurrency Exchanges
The press release from the company notes that the Ripple has partnered with the US-based cryptocurrency exchange Bittrex, Mexican Bitso, and Philippine Coin.Ph cryptocurrency trading platform. The initiative from Ripple emerges as a part of its plan to build a “healthy” ecosystem of digital asset exchange.
The new partners will allow Ripple’s xRapid payments system to move between XRP, US dollars, Mexican and Philippine pesos. Ripple has explained the operational system as follows:
“A financial institution (FI) that has an account with Bittrex would initiate a payment in U.S. dollars via xRapid, which instantly converts into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger, then Bitso, through its Mexican peso liquidity pool, instantly converts the XRP into fiat, which is then settled into the destination bank account.”
xRapid is a liquidity solution for Ripple’s Blockchain-backed real-time gross settlement system. The system is developed to facilitate international fiat transactions between financial institutions.
Ripple xRapid Pilot
According to the Ripple Chief Market Strategist Cory Johnson:
“We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.”
Back in May, financial institutions that took part in the test of xRapid platform have reported transactions savings of 40-70 percent. The platform has piloted payments between the US and Mexico. In addition, the participants have noted an improvement in transaction speed from 2-3 days to “just over two minutes.”
The testing has indicated a solid product performance. Nevertheless, the chief cryptographer of Ripple, David Schwartz, has stated that banks are not likely to deploy Blockchain to process international payments at the moment due to privacy and scalability issues.
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