Yesterday being the 1st day of October 2018, Ripple’s CEO Brad Garlinghouse came out to officially announce to the public that xRapid is now commercially available for use. This announcement was made at the Swell 2018 conference in San Francisco.
The product is designed to utilize XRP to allow financial institutions to send cross-border transactions in an instant, with significant cost savings compared to traditional ways of doing business. Ripple has also revealed which companies will utilize the technology first, including MercuryFX, Cuallix and Catalyst Corporate Federal Credit Union. According to the CEO:
xRapid eliminates the need for a pre-funded nostro account when executing a cross-border payment. It sources liquidity from XRP on exchanges around the world. As a result, cross-border transactions occur in minutes and at a lower cost compared to traditional methods, which take days and incur high foreign exchange fees.
Payment providers MercuryFX and Cuallix both participated in the pilot phase of xRapid earlier this year and saw immediate results in speed and cost savings. MercuryFX will deploy xRapid in the Europe to Mexico corridor.
Cuallix currently focuses on the key remittance corridor from the US to Mexico. Cuallix will use its financial services platforms Payllix and Cuallet to provide a better customer experience for individuals and families sending money home.
Lastly, Catalyst Corporate Federal Credit Union, a wholesale cooperative financial institution that serves more than 1,400 member and client credit unions throughout the United States, will use xRapid on behalf of their members to create a new cross-border payment service.
Ripple co-founder Chris Larsen recently expanded on exactly how xRapid can be utilized by financial institutions.