xRapid, Ripple’s cross border payments product that minimizes liquidity costs, is powered by the superior speed, low transaction cost and scalability of the digital asset XRP.
But for xRapid to be most successful, there needs to be a healthy ecosystem of digital asset exchange partners around the world. These exchanges allow xRapid payments to move from one currency - into XRP - and back into another currency quickly and efficiently.
Today, we’re pleased to announce Bittrex will act as the preferred digital asset exchange for xRapid transactions that move through US Dollars. In addition, Bitso and Coins.ph will be preferred for Mexican Pesos and Philippine Pesos, respectively.
Here’s what a xRapid payment flow will look like from the U.S. to Mexico:
1. A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex.
2. The payment amount in XRP is settled over the XRP Ledger.
3. Bitso - through its Mexican Peso liquidity pool - instantly converts the XRP into fiat, which is then settled into a destination bank account.
“Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. That makes today’s announcement an important development for xRapid,” said Cory Johnson, Chief Market Strategist at Ripple. “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.”
“We are excited to be partnering with Ripple to bring the benefits of blockchain technology to cross-border payments, making sending money home more affordable for 10M+ overseas filipino workers”, says Ron Hose, CEO of South East Asia’s e-wallet and financial services company, Coins.ph.
In May, Ripple announced that financial institutions piloting xRapid saved 40-70% on average compared to traditional foreign exchange brokers who facilitate cross-border payments. The payments also settled in two minutes or less compared to two to three days from traditional methods.