Ripple has confirmed that xRapid, its latest product that utilizes digital assets for cross-border payments, will be issued “next month or so.” Interestingly enough, some companies have already had the opportunity to try the technology and have utilized it in pilots.
Better yet, they’ve reported positive results. Ripple’s Sagar Sarbhai stated
“I am very confident that in the next one month or so you will see some good news coming in where we launch the product [xRipple] live in production.”
xRapid provides for higher levels of liquidity during transactions, which are sourced from XRP. The system reduces the need for vostro and nostro accounts. Various financial institutions have had the opportunity to test the technology for cross-border payments. In total, it is estimated that there are 19 that had tested the technology. A few of the most prominent include Banco Santander, Mercury FX, MoneyGram, Western Union, and Cambridge Global Payments.
Ripple’s CTO mentioned that many large banks have not yet adopted the technology, but may do so soon. The trouble is, they are “getting squeezed from both the side.” Another issue is that there is a need for improving services, or they risk becoming less relevant in the international payment markets.
Those who have used the technology have had positive things today. For instance, CPO at Currencies Direct, Brian Harris, mentioned that the company was “proud to be an early adopter of the technology” and stated that the trial was a “resounding success.” He also noted that XRP is a “game changer” for the space. Additionally, Ripple’s Asheesh Birla staetd,
“It’s encouraging to see positive xRapid results because they validate what many in our industry already know: certain digital assets have utility.”
Mercury FX’s Alaistair Constance stated that his company was ‘delighted” with the “incredible speed and cost efficiency” that xRapid offers. HE also mentioned that the company is excited for the upcoming production rollout in the “near future.”
On the downside, there are many who believe that XRP’s volatile nature will cause xRapid risk, such as lost value. However, Ripple’s Cory Johnson clarified by noting:
Using our xRapid product, you’re long XRP. But you’re only long for a minute maybe seconds. So the exposure to volatility while the overall volatility might be great if you’re look talking about five days you’re only in the for less than a minute so the actual volatile exposure is de minimis.
Asheesh Birla also stated:
“This is the realization of the vision for an internet of Value – allowing for a new fluid movement of money that will benefit the entire global economy.”