The wait seems to be over for the much-anticipated product by Ripple as its launch is expected to take place before the speculated release date, as reported by CNBC. The product dubbed xRapid will come up as a cross-border settlement solution by making XRP the asset of choice among various financial institutions. The xRapid launch is expected to take place in the next couple of months, reported ‘Sagar Sarbhai’, Ripple’s regulatory relations in the Asia-Pacific and Middle East regions.
The working of the xRapid would be slightly different from the other blockchain products on the Ripple platform. The xRapid will utilize XRP, a public cryptocurrency for settlement which can be transferred across the countries swiftly. Earlier, the company reported of considering cryptocurrencies namely Coins.ph, Bits, and Bittrex to support the ecosystem of xRapid.
The CEO of Ripple, Brad Garlinghouse predicted the adoption of xRapid by dozens of financial institutions by 2019 end. As of now, 120 plus financial institutions and banks are developing the company’s xCurrent that considerably reduces settlement time.
Although the company is likely to launch its xRapid product early than speculated, Ripple will have to face a tough time in convincing its customers to upgrade to the new product, as financial intuitions have not widely accepted the cryptocurrency. Though some regulatory bodies and policymakers, across the globe, have begun to accept cryptocurrency but the banks and financial institutions are yet to start using it.
Blockchain and cryptocurrency together have the potential to bring revolutionary change in business, stated Sarbhai in an interview. There was a time when blockchain was considered as a good innovation, while crypto was condemned, said Sarbhai. The acceptance of cryptocurrency by the regulatory bodies and policymakers has opened new horizons for the cryptocurrency.
Although the news of the postulated launch of xRapid is out; the company has not revealed the name of the banks with which it may be collaborating for the product. There are speculations about the company convincing banks and financial institutions that have already collaborated with it on the blockchain.
According to a report by CNBC, Ripple has entered deals with various financial institutions including the high-profile American Express and Santander. The deals, however, are limited to its xCurrent which is a blockchain-based product. It is used by the banks as a messaging platform and as a platform for confirming any transaction.
Ripple is moving towards enhancing its profitability by expanding the adoption of XRP through its product xRapid. Ripple owns nearly 60 billion of XRP tokens and as of now, there are 100 billion XRP tokens that are in circulation. The market price of XRP has risen to $3 in 2017 from $0.006. The rise has been mainly due to increasing adoption of cryptocurrency. Many businesses have adopted cryptocurrency as their preferred mode of transaction which has led to an increase in the rate of XRP.