RippleNet just rolled out its xRapid, a new product that could revolutionize the way financial institutions handle international money transfer. Using the network’s native cryptocurrency XRP, xRapid promises on-demand liquidity. But more importantly, the product’s rollout has finally demonstrated a real use case for the crypto.
Faster, Cheaper Cross-Border Payments
Ripple’s newest crypto product for cross-border payments is now finally live, the company announced via a blog post. xRapid, which uses the XRP crypto for transactions, is now commercially available and being used by a number of financial service companies such as Catalyst Corporate Federal Credit Union, Cuallix, and MercuryFX.
As mentioned in the blog post, xRapid offers two advantages to customers. First, cross-border money transfers using the system are cheaper compared to traditional fund transfer methods since financial institutions using xRapid will not need to maintain nostro accounts. Second, funds will be received in a matter of minutes. Since the receiving financial service firm will get the funds in XRP tokens, the company can just change the tokens to the local fiat currency via a local crypto exchange.
Real Use Case
xRapid’s launch has created a major milestone not only for the token but also for the entire cryptocurrency industry as a whole. At a time when some people are getting skeptical on digital currencies and their real use case, xRapid is an undeniable example of how digital coins can be used in the real world, aside from their function as a speculative investment vehicle.
Ripple Senior Vice President of Product Asheesh Birla told CNBC:
“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. 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 Targeting Banks
Ripple is packaging the xRapid product as a cheaper, faster alternative to existing international money transfer platforms. The company is specifically targeting banks and financial service companies in emerging markets as potential users of the cryptocurrency product.
“Those countries have a lot more forward-looking regulation when it comes to digital assets, so I would envision that those would be the first bank adopters.”
Of course, xRapid’s efficiency will also depend on the current crypto regulations of a country. In India, for instance, the crypto ban is still in effect, which means that banks won’t be able to use xRapid, or any crypto product, to speed up its fund transfers.