Ripple used for the first time one of its functionalities in real situation. Through xRapid, a transfer of funds from the United States to Mexico will cost 40 to 70% less than using traditional solutions, and lasted only two minutes.
Since its inception, Ripple has had a significant exposure . However, its protocol does not align with the standards of public blockchains, and does not even seek to emulate its competitors in the quest for decentralization. Ripple is clear on his position: the company only targets banks and financial institutions.
With 3 solutions named xCurrent, xRapid and xVia, the American company wants to revolutionize banking transactions by allowing them to save money for a very high transaction speed. In its latest press release , Ripple reveals that xRapid was first used for a US-based transaction to Mexico, with only two minutes of transfer time , whereas a conventional cross-border transaction would have required 2 to 3 days. The financial institutions responsible for this transfer would have saved between 40 and 70% on fees through this technology.
— Asheesh Birla (@ashgoblue) May 10, 2018
Cross-border trade is indeed an important issue for banks. The lack of liquidity, or the high transaction costs depending on the country, is a drag on these international transfers. xRapid makes it possible to answer these problems. Thanks to the speed of Ripple technology and its competitive cost, a transfer in XRP is then a real opportunity for these institutions .
Many believe that Ripple already has large partnerships for the implementation of its technology in bank transfers, others are mixed with the development potential of the company. This announcement is ultimately a good surprise for the future of the project.