What is xRapid?
xRapid is a cutting-edge platform developed by Ripple that aims to enhance the efficiency of international payments. By eliminating the need for a pre-funded nostro account, it allows for quicker and cheaper cross-border transactions. The secret sauce? It taps into the liquidity of the digital currency XRP, sourced from various exchanges around the globe.
The Pilot Success Story
Launched in May, xRapid entered its pilot phase with notable players like MercuryFX and Cuallix. The results were impressive: participants reported savings of 40–70% on transaction fees and a jaw-dropping speed increase, reducing average transaction times from several days to just over two minutes.
Key Partnerships and Use Cases
Right now, Cuallix is managing crucial remittance flows from the U.S. to Mexico, while MercuryFX is venturing into the Europe-Mexico corridor. Additionally, Catalyst Corporate Federal Credit Union is set to leverage xRapid for its new cross-border payment service aimed at serving credit unions across the U.S.
Building a Healthy Ecosystem
In August, Ripple took a significant step by partnering with three prominent cryptocurrency exchanges: Bittrex (U.S.), Bitso (Mexico), and Coins.Ph (Philippines). This collaboration is part of Ripple’s strategy to create a robust ecosystem for digital asset exchanges, facilitating smooth transactions between XRP and local currencies such as U.S. dollars, Mexican pesos, and Philippine pesos.
The Ripple Effect on XRP’s Value
In the wake of xRapid’s launch, the price of XRP has skyrocketed, even surpassing Ethereum’s market capitalization at one point. As of late September, XRP clinched the title of the second-largest cryptocurrency. This surge was fueled not just by the launch of xRapid, but also by news of U.S. bank PNC’s Treasury Management unit using Ripple’s xCurrent to streamline cross-border operations.
At the moment, XRP sits comfortably as the third-largest cryptocurrency, trading at approximately $0.57 and boasting a market cap of around $22.75 billion, according to real-time data.
