Ripple effect: Saudi bank joins blockchain-powered payment network

Lloyd Doyle
September 21, 2018

Ripple (XRP) received a serious boost this morning after news broke that Ripple Labs' xRapid project could debut in the next month, or so.

Sagar Sarbhai, head of regulatory affairs at Ripple, spoke to CNBC yesterday and confirmed positive movement on its xRapid platform.

While speaking to CNBC, the executive said he was confident that in the next month or so, supporters should expect good news as the company prepares to launch live production of xRapid.

Sarbhai has mentioned that now Ripple is in partnership with 120 banks or more leveraging xCurrent, another blockchain product of the start-up.

Ripple has partnerships with over 120 banks or financial institutions that use the company's xCurrent solution. xCurrent is a blockchain-based platform that allows banks to settle global transactions in real-time. The company has been working on this platform to improve the speed of the cross-border payment transactions while reducing the capital requirement for the liquidity.

The bank will initially connect to financial institutions in North America and Asia, starting in Singapore, Ripple said in an announcement.

xRapid allied with the Ripple Company's own cryptocurrency XRP allow for on-demand liquidity, significantly lowering costs while facilitating real-time payments in emerging markets.

For instance, a bank may perhaps want to process an exchange from the United States dollar to Indian rupees. With xRapid, Ripple claims that process would be sped up by converting the US dollars into XRP tokens, to then move the money overseas, converting it back into Indian rupees at the other end. Bitcoin has managed to find some stability trading around $6500, but the remainder of the market with Ethereum and XRP being two prominent coins in terms of market capitalization, have not faired almost as well.

At the same time, investors and holders might additionally retrieve trust in XRP and Ripple, forgetting all about centralization drama since Ripple is now seen openly pushing XRP towards mass adoption, which might be the ultimate goal of most cryptocurrencies in the market. Those companies include Santander, American Express, MoneyGram and Western Union.

"Furthermore, Brad Garlinghouse, Ripple CEO has asserted earlier in 2018 that as 2019 would come to end, xRapid will find its banking application in ''dozens".

Since the September 1st, XRP has declined by more than 18 percent - a figure better than ether's (ETH) 25 percent drop, but worse than bitcoin's (BTC) almost 10 percent fall during the same period.

More than any other cryptocurrency or blockchain-based product, banks and finance corporations have been desperate to absorb the technology Ripple offers, as they are only too aware how much money doing so would save them in the long run. He explained, "A couple of years ago the narrative was: blockchain good, crypto bad". "What we're now seeing is more and more regulators, policymakers taking the whole space in one conjunction", he said.

"So, I think that narrative thankfully is now changing because policymakers, regulators are seeing that there is a strong benefit that digital assets, cryptocurrencies bring in", the Ripple executive added.

Other reports by Iphone Fresh

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