Three major money transfer services claimed to implement XRP in 2018
Ripple announces major news via Twitter. Affiliated companies remain unnamed.
Ripple announced in a tweet last Thursday that its xRapid platform, which encourages the use of its native XRP token, would be adopted by 3 of the “top 5 global money transfer companies” in their payment systems.
The xRapid platform alleviates the costs for financial institutions making cross-border payments, by using the XRP token to serve as a form of liquid capital, which also reduces the need for those institutions to hold the currency they are trading in.
The tweet did not go on to identify the institutions who were involved in the program, instead relaying a list of benefits that had been identified by those involved in the pilot program, such as low fees and efficiency.
If the three unknown firms go ahead with using XRP to settle payments, they will join Mexican financial services firm Cuallix, which was the first to announce its use of XRP for cross-border payments.
The difference between Ripple’s associated protocols and services, compared to the XRP token has been a point of confusion for many investors recently. Following the news that Ripple’s messaging service, xCurrent, was being adopted by nearly 100 financial institutions, the XRP price rose sharply, despite it being unrelated to the service other than by name.
Ripple faces competition in offering cross-border payment solutions through the use of cryptocurrency. Stellar Lumens (XLM) is the native currency of the Stellar network, which was created by former Ripple founder Jed McCaleb, and has recently entered the top 10 rankings of cryptocurrencies by market capitalisation, sitting at number 8 at the time of writing.
Over the past month, XRP has enjoyed a meteoric rise in price, trading at AUD$0.20 at the start of December before rallying to an all-time high of $4.25 at the start of this month. The currency has experienced a strong correction in recent days, with the price sitting at $3.46 at the time of writing.