Ripple — a real-time gross settlement system, currency exchange, and remittance network — will supposedly have “dozens” of banks making use of its XRP-powered blockchain solutions in 2019.
‘Major banks will use xRapid’
One of the biggest knocks against Ripple — the third-largest cryptocurrency by market capitalization — is that the San Francisco-based blockchain start-up provides very little use for its in-house cryptocurrency coin, XRP.
Ripple’s CEO, Brad Garlinghouse, claims those fears are unfounded.
According to Garlinghouse, “dozens” of banks will be utilizing XRP-powered payment solutions by the end of the year. He told CNBC in an interview at the Money 20/20 Europe fintech conference in Amsterdam on Tuesday:
I’ve publicly stated that by the end of this year I have every confidence that major banks will use xRapid as a liquidity tool.
He continued:
You know, by the end of next year, I would certainly hope that we would see you know in the order of… dozens.
xRapid is Ripple’s product aimed primarily at financial institutions doing business in emerging markets, as payments into said markets generally require pre-funded local currency accounts. As noted by CNBC, the xRapid system allows clients to convert fiat currencies into XRP, which moves through the system almost instantaneously — four seconds, to be exact.
Western Union and Moneygram have already begun testing xRapid.
‘XRP is a Game Changer’
Late last month, Currencies Direct Ltd — a UK-based foreign exchange broker and international payment provider — announced the successful completion of an international payment over the xRapid platform. The transaction used XRP and represents one of the first successful trials of a cryptocurrency by a mainstream financial services organization.
Currencies Direct’s Chief Product Officer, Brian Harris, stated:
Our trial with XRP was a resounding success. We’re currently assessing our next steps, but the evidence we’ve gathered indicates that the use of XRP is a game changer, making payments near-immediate and significantly improving service to our customers. Our goal is to offer the best possible service. We believe that utilizing cryptocurrencies in this way — as a transfer of value, rather than as a store of value — is the next logical step for our industry. It is, after all, the intended purpose of cryptocurrencies and we’re proud to be leveraging new technology to deliver the most convenient and seamless experience for our customers.
At the time of this writing, Ripple (XRP) is trading at $0.67, up 2.82 percent over the last 24 hours.
What do you think about XRP’s utility in the near future? Do you believe dozens of financial institutions will utilize XRP-powered solutions by 2019? Let us know your thoughts in the comments below!
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[Full Disclosure: The author of this article holds XRP.]