Ripple’s flagship product, xRapid, has finally made its first significant step towards mainstream adoption as three companies become the first to make commercial use of the product officially.
A Trio of Hope
MercuryFX, Cuallix and Catalyst Corporate Credit Union, the three companies, have been revealed to be the first firms to officially implement the product commercially, after a notable series of highly publicized pilots.
xRapid, designed to be used in cross-border payments employs Ripple’s currency, XRP, as a sort of “bridge currency” to facilitate ease of transactions, speed and liquidity. Making the announcement in San Francisco today at Ripple’s Swell Conference, CEO Brad Garlinghouse presented the pioneering three companies, highlighting that the first baby steps of adoption came after series of trials by many other notable companies such as MoneyGram, Western Union, IDT and Viamericas.
Then came MercuryFX, whose main specialization is the sending and receiving of international payments; Cuallix, a remittance company mediating transactions between the United States and Mexico; and Catalyst Corporate Federal Credit Union proudly servicing more than 1400 credit unions in the United States as well.
Ripple Making Waves
The recent development is a significant milestone for Ripple and the XRP token, as its products continue to gain enough traction. Meanwhile, expert’s analysis and predictions have not ceased to bolster the XRP token as investors expect the Ripple’s product suite to soon finally displace the current infrastructure for cross-border payments, including accounts which banks must pre-fund with local currencies such as Nostro and Vostro’s. The senescent SWIFT messaging system is likewise no exception.
Ripple Senior Vice President of product, Asheesh Birla, spoke on the limitations of the current system of operation and how xRapid’s integration edges it out. He complained that the current system of transferring money, say to Mexico, is still very much the same as the late 20th century. He illustrated:
“You have to open up a bank account in Mexico, and you have to deposit pesos in that bank account, and then you pay out locally. And that whole process sometimes takes weeks, and the setting up of a bank account is a whole treasury operation that takes months to get going.”
However, Ripple’s xRapid navigates the problem, eliminates it, and even speeds up the whole process, as liquidity is essential. By converting the fiat put in by the sender to XRP and subsequently converting back to fiat at the receiver’s end, the ease and speed of transaction is ensured.
The pioneering companies are doubly enthusiastic about xRapid’s strengths. If xRapid is a bullet train, according to Mercury FX’s founder, SWIFT and correspondent banks must be wheelbarrows!