- A number of companies have started using the XRP-based platform xRapid
- Insiders say that this will help banks and other financial institutions save more on international money transfers
- Ripple Labs confirmed the news on Sunday
American company Ripple Labs confirmed that Coins.ph, Bitso, Bitstamp and Bittrex are now using xRapid, a cross-border payment solution based on XRP. However, the company has more good news as more companies have joined or are joining the network, based on reports from Ripple’s HQ. A total of 19 firms said on Sunday that they are either planning to adopt XRP or are already using the platform. The development does not come as a surprise to blockchain technology proponents because they have always had faith in what the tech can do, observers say. They also note that this shows naysayers that blockchain technology is the future.
Crypto exchanges and other companies that will be using or are already using the platform will be able to reduce the overseas transfer rates that they charge to customers whether these are individual clients or companies. Insiders say that the money customers save for fund transfers has always been one of the best benefits of using cryptocurrency and blockchain.
Back in 2017, blockchain technology got a great deal of press regarding its cross-border payment capabilities but payments processing giants shied away from using it due to the volatility of the cryptocurrency market. International money transfer giant Western Union, for example, tested one of Ripple’s products and noted that it did not make much of a difference for them in terms of savings.
Many experts note, however, that the technology will make it easier for companies and individuals to transfer money internationally as it can bypass foreign exchange problems. Moving one fiat currency to another is costly, experts add. Aside from that, the transfer rates can be expensive.
Ripple is among the most notable blockchain-based payment processors and it is now gaining ground despite what naysayers have previously said. According to the company, exchanges will be able to help traditional financial institutions move fiat currency across borders with XRP as their bridge currency.
The 19 companies that have joined or are joining the network include Euro Exim Bank, Bittrex
Bitso, Catalyst, Coins.ph, Bitstamp, IDT, Arrington Capital, Cuallix, Viamericas, Mercury FX, SBI Virtual Currencies, SendFriend, FlashFX, Transpaygo, R3, FTCD, Bitrue and JNFX. It is noted by insiders that more companies will be integrating the platform into their own systems within the year.
The latest firm to announce the news is R3, an enterprise blockchain software company. Reports say that R3 will be using Ripple’s XRP as its first crypto payment rail. The technology will be integrated into R3’s new international settlement platform.
Ripple is still controversial though as its CTO has told reporters that Bitcoin is at a “dead end”. There have also been claims that XRP is very vulnerable to attacks, an issue that Ripple refuted in a recent report.
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