A blockchain startup Ripple Lab announced that a successful XRP feasibility study with several banks across the world contributed to the creation of its much anticipated cross-border payment solution, xRapid.
Sagar Sarbahi, Head of Regulatory Relations for Ripple in the Asia-Pacific and Middle-East regions, delivered a speech during the 2018 Fintech Abu Dhabi Summit. He talked about Ripple’s xRapid product and revealed that 12 banks spread across the globe trialed XRP to scale liquidity and cut the costs and inadequacies of cross-border payments.
“These 12 banks were based across regions throughout the globe, and they didn’t have pre-founded relationships with each other. What we did was we gave these 12 banks some XRP and asked them to settle within themselves. And it worked beautifully. But then they came back and said, ‘You know what, this works beautifully and we’d love to adopt it but we can’t.’
And precisely for that exact reason you mentioned, about capital requirements, regulatory uncertainty, and so on. So they said that A: it’s volatile. B: there are no set regulations, so we can’t hold these assets in our books. So we actually went back to the drawing board and said, how do we change this? Which is why we came up with this product called xRapid.”
Earlier this year, Ripple CEO Brad Garlinghhouse said that this year will see dozens of major banks using their blockchain products. He went on to say that most major banks in all the four corners of the earth will have adopted xRapid by the end of 2019.
The price of Ripple has skyrocketed over the past three days, according to data from CoinMarketCap. While the price of major cryptocurrencies like Bitcoin and Ethereum increased by about 3-5%, Ripple saw the price of its XRP token jumping to over 50% in less than 24 hours.
According to reliable sources, Ripple will launch its xRapid product within the next 30 days.