Blockchain startup Ripple has sealed a deal with three cryptocurrency exchanges to use its XRP-powered platform xRapid for cross-border transactions.
According to a statement released on Thursday, Bittrex, Bitso and Coins.ph will act as the “preferred” exchanges for xRapid transactions in US dollars, Mexican pesos and Philippine pesos, respectively.
“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 Ripple’s chief market strategist, Cory Johnson. “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.”
Elaborating on the agreed partnership, Ripple said that financial institutions, which have an account with one of the aforementioned exchanges, will now be able to make payments via xRapid, where the money will be converted into Ripple’s native token XRP and then converted back into whatever fiat currency is required at the other end. As per the company, the product significantly increases transaction speeds and reduces costs, while also providing on-demand liquidity.
Ripple differs from other projects as it focuses on creating a blockchain solution for global payments which the company hopes will eventually replace the SWIFT system. On Wednesday, the startup revealed plans to enter the Chinese market.
As part of its goal, Ripple has established partnerships with traditional financial services players. Companies which have in recent months teamed up with Ripple to test XRP for international payments include Amex, Santander UK, MoneyGram, Cuallix, IDT, MercuryFX,Western Unionand FLEETCOR.
Back in May, Ripple revealed the results from the first pilot for xRapid. Reportedly, financial institutions using the service paid 40-70% less than traditional foreign exchange brokers who facilitate cross-border payments. In addition, the payments settled in two minutes or less compared to two to three days from traditional methods.