Ripple’s global head of banking Marjan Delattine says 10 financial institutions are now using XRP to power cross-border payments.
At the Paris Blockchain Week Summit, Delattine talked about the adoption of the digital asset, and why smaller financial firms are more likely to be early adopters of crypto.
“Corresponding banking is a very complicated process and creates lots of costs. Most of these costs are related to management of the liquidity. And this means billions or trillions of money trapped in accounts in order to move funds globally.
And I think the way that we see the use case of the crypto asset, in this case XRP, which is a product which is live, is around how you can source on-demand liquidity. This has a big influence especially for – not necessarily big banks, because they have obviously a different range of capital – but smaller institutions that pay a lot for maintaining capital in the destination account in a nostro-vostro relationship, as we call it. They are struggling, actually, with these costs. Especially with the regulator requirements.
So clearly, the use case that we see is, rather than maintaining even accounts or funds in the destination currency, how you can use crypto assets, in this case XRP, to source on-demand liquidity when you need it and at a cheaper price. The product went live at the end of last year. We do have 10 financial institutions that actively are using that, and the volume is increasing, actually, coming every day.”
Ripple launched xRapid in October of last year. It uses XRP to power global payments.
A total of 13 companies have publicly revealed they are using or plan to adopt xRapid in the future. The latest addition is Euro Exim Bank, which says it plans to use the technology to move money across 80 countries.
- Euro Exim Bank
- Mercury FX
- SBI Virtual Currencies