xRapid Update: Bitso Liquidity Index Breaks Into An ATH As XRP/MXN Trading Gains Momentum
- MoneyGram facilitating cross-border flows
- Significant Volume means Ripple doesn’t have to incentivize
- The Bitso Liquidity Index has broken into an all-time high (ATH).
Mexican licensed crypto exchange Bitso is seeing heightened activity when it comes to XRP/MXN trading. Though the volume in itself isn’t much, it is making progress and continuously growing.
The latest liquidity index on Bitso XRP/MXN.
The index is shown in XRP (blue) & MXN (red).
— てにったー (@tenitoshi) September 13, 2019
In the past 24 hours, XRP/MXN registered the trading volume of $509,763, accounting for 0.05 percent of all the volume recorded in XRP markets, as per Coinmarketcap.
On Sept. 14, XRP/MXN trading volume surpassed BTC/MXN volume on Bitso. However, currently, while BTC/MXN accounts for more than half at 58.45% of all trading volume on Bitso, XRP/MXN only has about 32% share.
MoneyGram facilitating Cross-Border Flows
Just last month, Breanne Madigan, the head of Global Institutional Markets at Ripple and former Goldman Sachs executive shared despite the trading volume of the digital asset being down 65 percent, XRP/MXN has surged 25 percent.
With one of its latest partner MoneyGram as an example, she detailed how MoneyGram help facilitate their cross-border flows for someone who lives in the US and wants to send Mexican pesos back to Mexico.
How it works is, through its partnership Ripple send MoneyGrams flow to one of the originating exchanges say Coinbase in the US where the US dollars get swapped to XRP and then they get sent to cross-border to a local exchange in Mexico say Bitso where it takes that XRP and swaps it into local Mexican pesos. The consumer then will receive Mexican pesos directly.
So, Ripple delivered significant cost savings to MoneyGram, a real value proposition to a company that's affecting the end consumers because their fees will be lowered as a result.
As such as Ripple scale xRapid, its on-demand liquidity product, they're launching new corridors.
Significant Volume Means Ripple Doesn’t Have to Incentivize
Madigan further states the way they've structured their contracts is in such a way that it leaves an opportunity for new liquidity participants to have the incentive to enter.
Since launching MoneyGram into that corridor, “a number of new liquidity participants are realizing there is a real arbitrage opportunity,” and Ripple doesn't have to pay to incentivize people to make markets because there's the significant volume going through that corridor.
On another note,
Madigan also talked about how they've seen global consensus from countries across the world including the UK, Australia, Malaysia, and Singapore noting that XRP is not a security but in fact a hybrid between a utility and settlement token.