Euro Exim Bank Integrates Ripple’s xRapid Solution Powered by XRP Successfully
Euro Exim Bank, one of the banks that partnered with Ripple is the first financial institution that has officially adopted the xRapid product. The information was released by the bank’s head of compliance and operations Graham Bright during an interview with Trade Finance Global.
According to him, they have already created a cloud-based blockchain application related to trade finance. The bank is also working with technical resources at Ripple and have successfully implemented the xRapid system for customers that have to perform low-value remittances. The service is currently present for jurisdictions and currencies that are subject to large exchange costs.
In order to reduce costs, the bank will be using the XRP digital asset to source liquidity on-demand. That means that when an individual or small firm wants to make a transaction, the bank will be using the XRP virtual currency and selling it in another exchange for the local currency requested by the customer.
Graham Bright commented on the matter:
“Using underlying XRP digital assets (not mined or subject to wild price fluctuation) through registered exchanges which minimise liquidity costs, local recipients may be paid in local currency, assisting the secure flow of money and reduce cash flow restrictions.”
The Euro Exim Bank is located in St. Lucia and also has a representative office in London. Corporate buyers and sellers work with this institution to export and import goods and services.
Earlier this year, Ripple released a report in which they informed that RippleNet surpassed 200 customers worldwide. Euro Exim Bank was among the customers working with Ripple’s payment network. At that time, Ripple informed that Euro Exim Bank was going to start using XRP for liquidity, low cost and transparent payments.
Kaushik Punjani, Director at Euro Exim Bank explained that as a leader in trade finance solutions around the world, they are ready to offer new payment channels and ways to source liquidity. Several customers have been restricted from obtaining funds or settling transactions in an efficient way.
Bright has also talked about blockchain technology, calling it the ‘technology of trust.’ He explained that distributed ledger technology (DLT) is an ideal mechanism to transfer assets and payments in real-time. Additionally, it is possible to establish immutable ownership of money, goods and also information.
Bright mentioned that DLT will also evolve into the de-facto delivery mechanism for better visibility, transparency, trust, security and accessibility of digitized trade documents. This would allow companies to reduce costs and eliminate them in many other cases.
Now, the proof of concept that the bank was working on is already completed a. They have already started instructing global payments using the Ripple xCurrent DLT platform.
XRP is currently the second largest digital asset in the market. It has a market capitalization of $12.41 billion and each coin can be purchased for $0.301. Ripple has been working with different companies all over the world to start offering services and products to reduce cross-border payment costs and transaction times.
Euro Exim Bank is just one of the first firms implementing and using Ripple’s technology. In the future, the number of companies working with Ripple is expected to grow, challenging SWIFT’s presence in the market.