Ripple’s XRP token just became a little more valuable. The company has signed deals with IDT Corporation and MercuryFX, two international payment providers that handle hundreds of millions of transactions worldwide per year.
Both companies will be using Ripple’s xRapid platform, which allows institutions to save on the cost of accessing and providing liquidity to their customers.
Ripple wants to prove xRapid is faster and cheaper than other means of payment. The platform is designed to allow global money transfer services and central banks to free up capital normally tied up in what are known as nostro and vostro accounts.
A nostro account is when a domestic bank owns an account at a foreign bank in that foreign bank’s national currency. To the foreign bank in this scenario, that very same account is considered vostro (latin for “yours”). The money being held is in the local currency, but the funds belong to the foreign institution.
In this context, we’re talking about banks and global payment providers that have hundreds of millions of dollars in liquid assets held between one another at all times. Imagine putting those funds on a third party platform locked down by a blockchain. Now money can flow more freely, saving time and and cutting down on expenses for all parties involved.
The two newest additions to the Ripple family have helped the company start 2018 with a bang. Earlier this month, Money Gram, the second largest global payment provider in the world announced they would use xRapid, as well as Mexican bank Cuallix.
In November of last year, Ripple announced a deal with credit card issuer American Express. An Amex executive commented that Ripple’s platform would play a transformational role in the way customers are served.
The complete list of current Ripple partners is indeed a long one, listing over 100 central banks and many more payment providers. It seems that list is only going to grow longer and longer as more and more payment providers look to free up liquidity and lower their costs in a way they were never able to do before.
Ripple’s XRP token is up over 500% over the last year and CEO Brad Carlinghouse recently stated that there are plenty of major announcements to come regarding partnerships with major players.
The company won’t release that information until partners are ready to reveal themselves. But while confidential information may be held that way for a while, organizations dealing with Ripple can rest assured that large volumes of money are going to be able to flow more freely than ever before.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:09 PM UTC