According to reports xRapid, a cross-border payments cryptocurrency product by ‘Ripple’ will go live for the very first time with three major financial institutions.
xRapid, a product from Ripple that makes use of cryptocurrency XRP to carry out international transactions in “a matter of minutes” will be finally available commercially, mentioned the San-Francisco-based financial technology firm on 1st October Monday 2018.
As per updates from the company, the product will be used by cooperative financial firm Catalyst Corporate Federal Credit Union along with other payment providers such as Cuallix and Mercury FX. The news for the same was announced on Monday by Chief Executive Brad Garlinghouse at a two-day event start-up’s annual Swell conference which was attended by respective industry representatives.
Ripple’s senior vice president of product ‘Asheesh Birla’ told CNBC that “I’m really excited to bring the product into the market at a time when there is a lot of skepticism about digital assets and their real use case.” He further added that “Here’s something where we’re finding a ton of value and providing a ton of value to our customers using digital assets to move money more efficiently.”
Ripple believes that people often get confused between the two i.e. the private company and the XRP. The latter being the native digital currency of an open source network popularly known as the XRP Ledger.
Ripple owns a total of 60 percent out of the 100 billion XRP tokens that are currently in existence. Further to create certainty of XRP supply at any given time, the company has kept 55 billion of the tokens locked up in an escrow account. All this clearly states that the company presently has access to only 13 percent of the digital currency.
For the very first time, the development of the XRP will be used by financial services firms in a commercial application. The step is considered as an important move for achieving a critical milestone for adding Ripple to make cryptocurrencies and blockchain technology a part of the financial mainstream. The blockchain technology which we all know as a distributed ledger that makes a record of information and transactions across a distributed network of computers might use Ripple’s new technology to offer more efficient products. Ripple mentioned that the business model of the company also works around benefiting financial institutions for offering a core source of revenue.
The company states that it is currently testing its cryptocurrency product with payment companies such as Mercury FX and Cuallix along with money transfer giants such as MoneyGram and Western Union. Despite revealing the names, the company has not made any official announcements regarding the banks that are going to plot xRapid but hinted that big lenders are unlikely to be the first to test or use the technology.