The team behind Ripple have recently announced that they are very close to releasing their latest product, which could be seen to hit the market in the next month or so. The product is named xRapid, and the head of regulatory relations for the Middle East and Asia-Pacific at Ripple claims that they are making significant headway with the tool, which aims to help speed up bank transactions.
xRapid uses the Ripple cryptocurrency as the ‘bridge’ between two different currencies, therefore the transactions can process across borders a lot more quickly than the methods that are currently used. It basically offers on-demand liquidity that not only lowers cost, but also enables real-time payments.
Today, it is likely that pre-funded local currency accounts are often needed before a cross-border transaction can take place. xRapid is set to change this, as the original currency would be converted into XRP tokens which are then moved overseas, and then converted back into the new currency.
Ripple is in conversation with a number of high profile financial institutions, with who they have had some unrelated deals with in the past. Some of the largest institutions include the likes of American Express, MoneyGram, Western Union and Santander, although none are actually set to definitely use xRapid once it is released. So far, no bank has begun testing it yet, something that Ripple hopes will change soon.
120 banks and financial institutions are already using Ripple’s xCurrent to settle international transactions, so there is hopes that some of these will also want to use xRapid. The Chief Executive of Ripple, Brad Garlinghouse, claims that there will be dozens of companies using it by the end of 2019.