A new report has emerged according to Cointelegraph stating Ripple has entered into partnership with three exchanges in three different countries ; US, Mexico and the Philippines in their first wave of taking xrp liquidity a step further.
The report mentioned Bittrex, Bitso and the Coins.Ph in the respective countries as the three exchanges that were included in the ripple cross border payment and remittance product range.
Ripple through these partnerships aims to build a healthy eco system of digital assets exchange as this will allow ripple xrp payment solution to move between the US dollar, Mexican pesos and the Philippine pesos currencies respectively in real time.
According to Ripple the operational principle;
“A financial institution (FI) that has an account with Bittrex would initiate a payment in U.S. dollars via xRapid, which instantly converts into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger, then Bitso, through its Mexican peso liquidity pool, instantly converts the XRP into fiat, which is then settled into the destination bank account.”
Xrapid is Ripple's block chain based real time gross settlement system liquidity token which was built to facilitate real time cross boarder fiat settlement between financial institutions.
Ripple Chief Market Strategist Cory Johnson had this to say;
“We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.”
Earlier this year, the pilot test of the cross boarder payment between the US and Mexico resulted in about 40 - 70 % savings in transaction cost with the time taken significantly reduced from 2-3 days to just over two minutes.
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