Ripple’s xRapid System Activates First Three Accounts For Cross-Border Paymentsbr>
xRapid, the Ripple product powering cross-border payments, is now commercially available and moving into production with three partners, including MercuryFX, Cuallix and Catalyst Corporate Federal Credit Union.
xRapid eliminates the need for a pre-funded nostro account when executing a cross-border payment by sourcing liquidity from XRP on exchanges around the world. A nostro account is an account that a bank holds in a foreign currency in another bank. As a result, cross-border transactions occur in minutes and at a lower cost compared to traditional methods, which take days and incur high foreign exchange fees.
Payment providers MercuryFX and Cuallix both participated in the pilot phase of xRapid earlier this year and reported results in speed and cost savings. MercuryFX will deploy xRapid in the Europe to Mexico corridor.
Cuallix currently focuses on the remittance corridor from the U.S. to Mexico. Cuallix will use its financial services platforms Payllix and Cuallet.
Lastly, Catalyst Corporate Federal Credit Union, a wholesale cooperative financial institution that serves more than 1,400 member and client credit unions throughout the United States, will use xRapid on behalf of their members to create a new cross-border payment service.
“MercuryFX has been working closely with Ripple for more than a year to bring the power of RippleNet to our customers,” said Alastair Constance, CEO and founder of MercuryFX.. “In pilot tests we saw the benefits of xRapid, and we’re excited to roll commercial payments out within the quarter. The time to replace slow, expensive payments architecture is now because the need for global access to smooth-flowing capital has never been so acute.”
“The promise of digital assets has always been faster, more efficient payments,” said Nicolas Palacios, CFO of Cuallix. “That’s why we started exploring xRapid for our financial services platforms Payllix and Cuallet — to help our customers whose livelihoods depend on sending micro-payments easily and quickly to Mexico. Now, our customers can finally realize that promise.”
“The traditional international wire experience fails to meet today’s expectations from a price, speed and ease-of-use perspective,” said Brad Ganey, senior vice president and COO, Catalyst Corporate Federal Credit Union. “Blockchain technology, and specifically Ripple’s xRapid product, resolves all three of these challenges simultaneously. Catalyst Corporate, through our subsidiary companies’ technology platforms, will leverage the XRP digital asset to transfer money across borders instantly on behalf of our 1400+ member credit unions. We have signed a production contract and are currently building out our plan.”