xRapid, Ripple’s blockchain-based XRP-utilizing cross-border transaction platform has launched, and it’s a big deal for blockchain and cryptocurrency. The price of XRP, however, hasn’t risen, surprising many considering the xRapid development. In fact, the price of XRP is actually down nearly 10% at time of writing.
Unhashed reported on Ripple and its native coin XRP’s success in September. The sudden price rise of XRP, adding more than 100% to its price at one point, was attributed to a number of Ripple developments—not least, the news that the xRapid platform launch was imminent.
The xRapid proposition from Ripple is now live. Not only does it enable cross-border transactions, but it does so using the XRP cryptocurrency. xRapid speeds up international payments by making the cross-border journey in XRP, before transferring the balance back to fiat currency when the payment arrives at its destination. It’s an advance in utilization for blockchain, currently piloted by many in cross-border transactions.
Until now, many blockchain pilots and platforms have addressed the exchange of information rather than using a cryptocurrency in the transactions themselves.
The use of XRP in xRapid transactions could increase the volume of XRP traded and utilized, a factor that could potentially boost XRP’s price.
First xRapid Users are Payment Providers
News broke on Monday, October 1, 2018, of the xRapid launch, which Ripple confirms is now commercially available and will be immediately used by three financial institutions. The three are payment providers Mercury FX and Cuallix, and cooperative financial firm Catalyst Corporate Federal Credit Union.
Asheesh Birla, Ripple’s senior vice president of product, told CNBC:
“I’m really excited to bring the product into the market at a time when there is a lot of skepticism about digital assets and their real use case.”
Cuallix, Mercury FX, and money transfer companies Western Union and MoneyGram were involved in xRapid tests. Ripple has said that big banks are unlikely to be the first to use the platform. It may be this lack of big player patronage that is so far holding back a boost to the price of XRP.
Birla explains the current user base, pointing to Ripple’s experience with payment providers:
“Banks worldwide are not first adopters of the xRapid product, but we are seeing a lot of financial institutions in general and payment providers moving forward with that product.”
Birla also predicts that banks in emerging markets, with more forward-looking regulation are more likely to be earlier users of xRapid.
Forbes reporting also highlights XRP’s lack of response to the xRapid news, which was announced by CEO Brad Garlinghouse at the Ripple Swell event. At the start of Swell XRP was sitting at $0.61 but then fell slightly to $0.58.
XRP investors may be waiting for other financial institutions to adopt the xRapid technology; many may have already committed on the news of the planned launch, but others could be looking for results before buying.
There is still time for XRP price to be impacted positively, especially on the back of proven success for xRapid or more adoption.
XRP may also be being held back by the overall cryptocurrency markets, where Bitcoin is still hovering around the $6,500 mark.
Even with the current stall, XRP was September’s best performing coin, gaining roughly 67% over the month.
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