Ripple released a report announcing the progress of its pilot tests for the Ripple xRapid product. The pilot tests show that xRapid is successfully achieving cheaper and faster cross-border transactions.
The complaint has always been that sending money around the world is slow and comes with large fees. xRapid is meant to solve this. Ripple’s report stated that “xRapid leverages the technology behind the digital asset XRP, to make cross-border payments truly instant.”
The Ripple xRapid Results
“Aggregated results from several pilots for xRapid are now available,” Ripple stated.
The report cited the results from testing cross-border payments between the US and Mexico at financial institutions using xRapid. These cross-border payments were between 40-70% cheaper than the fees normally paid to foreign exchange brokers.
On average, an xRapid payment was not only cheaper but faster too than regular cross-border payments. xRapid payments took just over two minutes, which is significantly faster than the normal two to three days that cross-border transactions take regularly.
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How does Ripple xRapid Work?
A financial institution will directly connect to a digital asset exchange in both the originating and destination locations. The currency will then move from the originating location to the destination location.
The currency begins as the originating location’s currency. On its journey, the currency is exchanged into XRP at the originating digital asset exchange. The XRP is what provides the liquidity to power the final payment. Within seconds, the XRP is then exchanged into the destination currency at the destination digital asset exchange.
The final payout, in the proper destination currency, is completed.
This process allows for a speedy and cheap transfer. It is also what allows the entire transaction to be tracked, from one end to the other, making it completely transparent.
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The results of the Ripple xRapid product are impressive, but are they bringing value to the coin? At the moment, they don’t appear to be.
Ripple (XRP) is currently selling for $0.708279, which puts the coin down 10.85% in the past 24 hours.
With further implementation of xRapid, XRP may begin to grow. For now, XRP remains below $1.00.
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