Ripple To Launch Commercial Version of xRapid Soon

Ripple is contemplating launching a commercial application for its cryptocurrency focused product xRapid. The product could be out in the next one month according to the Head of Regulatory relations Sagar Sarbhai.

The new product under development seeks to help banks speed up transactions especially those involving international payments. In addition, it should help minimize liquidity costs by reducing the capital requirements. The upcoming platform is for commercial use, backed by XRP tokens.

“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production," said Mr. Sarbhai.

By using XRP cryptocurrency, banks, as well as other financial institutions, should be able to process cross-border transactions in real time. For example, if a bank wants to process, a transaction from say Euros to U.S dollar a pre-funded local currency account is a must.

However, with xRapid, a bank will only need to convert the Euros to XRP tokens to transfer the money overseas. Once they reach their final destination, conversion of the tokens to U.S dollar will kick in through a process that occurs in real time.

Ripple has already struck deals with a  number of high profile financial institutions as it looks to be a key player in cross-border payments. Some of the institutions include Santander, MoneyGram as well as Western Union. However, the partnerships are unrelated to XRP, and no single bank is yet to test the cryptocurrency product.

Most of the banks, about 120, have only partnered Ripple for its blockchain based xCurrent product and not xRapid. Banks use the blockchain product to settle international transactions as it allows them to communicate with one another to confirm each stage of a cross-border payment in real time.

Mainstream financial institutions are increasingly exploring ways to leverage the power of blockchain technology. Amidst the push, regulators and authorities around the world continue to maintain a cautious approach when it comes to cryptocurrency.

XRP and Ripple network has proved to be reliable in accelerating cross-border payments. However, authorities continue to raise concerns that they could be used to fuel illicit practices such as money laundering. Concerns of investors losing money also remain rife.

Authorities have also raised concerns over the level of volatility associated with cryptocurrencies of which Ripple is one of them. XRP rose to record highs last year but has since lost a significant amount of market value.