Ripple Reveals xRapid Pilot Results
The currency exchange and open payment network, Ripple, has announced the outcome of xRapid’s first pilot.
For those of you who don’t know what xRapid technology is, it is Ripple’s remittance solution for financial institutions and payment providers which seek to eliminate delays in cross-border payments. The solution would also reduce the cost of such payments significantly.
What is xRapid?
As Ripple puts it:
“A payment journey with xRapid looks like this: a financial institution connects directly to digital asset exchanges in both the originating and destination corridors. The originating currency is exchanged into XRP which provides the necessary liquidity to power the final payment, and then in seconds that XRP is exchanged into the destination currency in the second digital asset exchange. Once this transaction takes place, the funds are sent out on the local rails of the destination country for payout. The transaction is tracked end-to-end, and the result is a cross-border payment that is cheaper and faster than ever before.”
Ripple aimed to create a modern financial services system which would be powered by the Blockchain technology—a solution which would reduce the cost and increase the speed of global payments. The company claimed that the results were very positive by saying:
“For payments in the critical remittance corridor between the U.S. and Mexico, financial institutions using xRapid saw a savings of 40-70 percent compared to what they normally pay foreign exchange brokers. An average xRapid payment took just over two minutes, compared to today’s average of two to three days when sending cross-border payments. The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.”