Two new additions in the form of MoneyGram, a money transfer giant and MercuryFX, a foreign exchange company came to the Ripple project xRapid. The partnership resulted in the rise of the prices of Ripple and its token XRP.
Step towards transforming remittance industry with Blockchain
Ripple is a blockchain-based software solutions provider for banks that made a big partnership announcement. This blockchain company is reportedly partnering with two companies that are the leading foreign exchange providers. MercuryFX and MoneyGram are the two firms that are going to use the Ripple cryptocurrency as part of their money transfer operations. The idea behind the partnership is to enhance the customer experience by providing real-time transparent global payments at low cost.
The arrangement involves the use of Ripple digital currency that is XRP. XRP will be used though the new Ripple service called xRapid that is designed to offer liquidity to financial institutions.
xRapid: Low cost money transfers using XRP
xRapid is a project launched by Ripple in order to facilitate the global money transfers by making use of XRP as an intermediary currency. With the increase in the remittance market, the need for transparent and instant transfers at low cost has arisen.
As per the statistics, the global remittances for the year 2017 were estimated to be $596 which is inclusive of flows to the high-income countries.
It has been claimed by the Ripple that with the help of XRP and xRapid, the financial institutions can eliminate the requirement for both pre-funded Nostro accounts in the local currencies and of course the costly intermediaries. The company also released a statement regarding the speed and efficiency of the ripple token XRP:
“XRP remains the most efficient digital asset for payments with transaction fees at just fractions of a penny, compared to Bitcoin fees of about $30 per transaction. Similarly, the average transaction time for XRP is 2-3 seconds with other top digital assets ranging from 15 minutes to an hour.”
The partnerships to boost Ripple’s position in crypto market
The addition of two new partners that will use XRP and xRapid, is a significant move for Ripple. This will help it in making a mark in the market other than just being a vehicle for speculation. Both the partners are extremely optimistic about the use of cryptocurrency in the remittance sector.
Alastair Constance, the founder, and CEO of MercuryFX explained:
“Ripple, XRP and fiat currency fit hand in glove. What we’re doing together is realizing one of the best use cases for frictionless transactions, which is an international settlement. xRapid allows us to drive down the cost of currency exchange and global settlement, making our customers more competitive and saving them tens of millions of dollars each year. Digital assets promise fast transaction speeds but XRP is far faster than all of them, including bitcoin. Cutting settlement times from hours and days to just three seconds or less will remove billions of dollars in unnecessary intermediary fees.”
As XRP is soaring to great levels, Ripple is getting a lot of scrutiny as a result. The price of Ripple also saw a good rise and recently had a market cap of over $120 billion.
What do you think of this partnership? Do you think it will bring a rise in the value of Ripple? Let us know your thought in comments below.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.