Ripple has revealed some impressive results from early pilots of xRapid – the company’s real-time settlement platform that uses XRP to offer on-demand liquidity.
The system allowed participating financial institutions to save 40-70% of the typical cost, and lower the transaction time from two to three days to “just over two minutes,” according to Ripple. The part of the transfer that utilized Ripple’s XRP ledger took an average of two to three seconds.
Mercury FX – one of the companies involved in the pilot – says the technology is transformative. “Mercury is delighted with the incredible speed and cost-efficiency of the xRapid pilot phase and is excited about a production rollout in the near future,” said Alastair Constance, Founder of Mercury FX. “To date, the Ripple collaboration has been a great success.”
Mercury FX is a global currency exchange provider, similar to Western Union, providing international money transfers. “The exchange rates were very competitive,” Constance said in an interview with Forbes, “and the transaction times were unbelievable.”
The pilot tested transactions between the US and Mexico. Other companies piloting xRapid include MoneyGram, payment processor Cuallix and telecom provider IDT.