Ripple announced on 16th August 2018 its partnership with three exchanges to utilise its xRapid cross border payments system. The system has been designed to reduce liquidity costs with high speed, low cost, scalable transactions using the XRP currency. Exchanges using this system will have to move the xRapid payment from the currency it is in, into XRP and back into a different currency when it reaches its destination. Essentially the system will buy Ripple with the first transaction on an exchange and move it to another exchange almost instantly, converting it to the other fiat currency.
The partnership is to allow access for xRapid transactions to move through different fiat currencies. Bittrex has been chosen for transactions involving US dollars, Bitso for the Mexican Pesos and Coins.ph for the Philippines Pesos. You can buy Ripple on all these exchanges. Ripple provides a breakdown of the process using the exchanges as examples:
Chief Market Strategist at Ripple, Cory Johnson, stated that Bittrex and the other exchanges are some of the biggest names in cryptocurrency trading, signifying the importance of the partnership. The partnership is laying the foundations for when xRapid develops from beta into production.
Ripple previously trialled xRapid with financial institutions who saw potential savings of 40-70% comparable to the normal foreign exchange, facilitating the transaction in two minutes as opposed to two to three working days.
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