Ripple says a successful pilot of XRP with a dozen banks across the globe led to the creation of its XRP-powered payment solution xRapid.
Sagar Sarbhai, Ripple’s head of regulatory relations for Asia-Pacific and the Middle East, recently joined a panel at the FinTech Abu Dhabi 2018 conference. There, he revealed the origins of xRapid. Ripple gave XRP to 12 banks for internal testing in 2016.
“These 12 banks were based across regions throughout the globe, and they did not have prefounded 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 would love to adopt it but we cannot.’
And precisely for the 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 of regulations, so we cannot hold those 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.”
The adoption of xRapid, which utilizes XRP to increase the speed and liquidity of cross-border transactions, is a topic of intense interest in the Ripple community.
Ripple CEO Brad Garlinghouse has said that he expects banks will implement xRapid by the end of this year, and hopes dozens will be on board by the end of next year.
“I think as we do things that enhance the utility of XRP, we’ll continue to see that ecosystem grow and be healthier and healthier. I’ve publicly stated by the end of this year I have every confidence that major banks will use xRapid as a liquidity tool by the end of this year. By the end of next year, I would certainly hope that we would see an order of magnitude – dozens.”
XRP is now at $0.37, up more than 14% in the last 24 hours, according to CoinMarketCap.
The Ripple Beat