Ripple Piloted XRP with a Dozen Banks before Launching xRapid, Executive Confirms
Sagar Sarbhai, the Head of Government and Regulatory Relations for APAC and the Middle East at Ripple, recently talked about the use of XRP within banking institutions at a fintech convention. During his speech, Sagar disclosed information that was hitherto withheld concerning banks and the development of the xRapid solution. Specifically, Sagar told his audience about how XRP was used by 12 banks in the pilot phase of the creation of xRapid. These banks were not interrelated and were spread across various locations worldwide. According to Sarbhai, Ripple issued XRP to these banks and asked them to settle and it worked perfectly.
Although XRP is designed to facilitate the seamless conduction of cross-border payments, a system had to be developed to enable the banks to use the cryptocurrency token. To this end, Ripple had to mitigate the risk of volatility and account for the regulatory compliance. As per Sarbhai, these issues were fronted by the bank when approached to trial the use of XRP. Precisely, the banks told Ripple that they would not adopt the digital currency because of the capital requirements and regulatory uncertainties. The issue of volatility seemed to be the biggest obstacle to this adoption.
As a result, Ripple had to rethink its approach to this matter, a factor that resulted in the creation of xRapid in its current state. Ripple decided to team up with payment solution providers who demonstrated the willingness to try the product. Regarding this, Sagar said that the payment services accepted Ripple’s offer because they did not have hold digital assets. Instead, they would use the xRapid platform to establish a connection to a digital exchange and convert XRP into fiat and vice versa in real-time. Moreover, these transactions had no risk of volatility.