Ripple reported the successful xRapid pilot trial of cross-border payments between US and Mexico that registered 40 to 70 percent cost savings and faster transactions.
xRapid achieves speedier transactions with substantial cost reduction
Today, Ripple posted the results of the pilot run of its xRapid service. xRapid is an on-demand liquidity solution that utilizes XRP which “dramatically lowers costs while enabling real-time payments in emerging markets.”
The tests were conducted “in the critical remittance corridor between the U.S. and Mexico” that according to the press release resulted in the savings of 40 to 70 percent in comparison to what the participating financial institutions usually pay to the foreign exchange providers.
Additionally, the report further talks about the time taken by the xRapid transaction which was just over 2 minutes instead of the usual 2 to 3 days taken by the traditional means.
Moreover, the transfer portion that relies on XRP ledger took only 2-3 seconds meaning “the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.”
Asheesh Birla, the SVP of Product at Ripple stated:
“It’s encouraging to see positive xRapid results because they validate what many in our industry already know: certain digital assets have utility. XRP’s utility lies in its speed and scalability, which makes it the perfect fit for cross-border payments. The XRP Ledger can send 1,500 transactions per second.”
XRP gets tested in highly competitive US-Mexico market
The market used in the pilot for testing payments i.e. US and Mexico are immensely competitive and popular where participants are always looking for a competitive edge which xRapid targets on point with its lowering costs and speeding payments.
Usually, these market participants have to go through the banking network which is slow and expensive or pre-funded bank accounts in Mexico that leads to tied-up capital.
The Founder of Mercury FX, Alastair Constance talks about the successful xRapid involvement with:
“Mercury is delighted with the incredible speed and cost-efficiency of the xRapid pilot phase and is excited about a production rollout in the near future. To date, the Ripple collaboration has been a great success.”
Paul Dwyer, the co-founder, and CEO of Viamericas shared his experience of xRapid:
“We were very pleased with our pilot results. It’s clear that xRapid can lower liquidity costs while increasing payment speed and transparency in a way that facilitates rigorous compliance controls. We believe that digital assets like XRP will play a key role in the future of cross-border payments, helping to safely address some of the structural inefficiencies of legacy settlement infrastructure as their adoption grows. We look forward to exploring next steps with Ripple.”
Amidst the ongoing lawsuit, this is certainly a good news for XRP. XRP is currently at $0.804 which with this successful pilot trial and financial players keep on partnering up with Ripple, we might witness a good surge in its prices.
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.