UK-based foreign exchange broker and international payment provider Currencies direct successfully completed an international payment over Ripple’s xRapid platform using XRP. This is one of the first successful trials of a digital asset by a mainstream financial services organisation.
In the trail a number of transfers between pre-screened organisations took place in seconds, compared to the 3 to 5 day period that transfers currently take. The trial has served as a technological proof of concept for XRP as a means of value transfer, achieving superior speed of payment and end-to-end transparency, compared to traditional means of payment. This marks a departure from the speculative trading of cryptocurrencies that has dominated the marketplace thus far and a shift towards the intended purpose of digital assets – as a means of value transfer.
With xRapid, a financial institution connects directly to exchanges in both the sender’s and receiver’s countries. The sender’s currency is exchanged into XRP and then in seconds that XRP is exchanged into the destination currency in the second digital asset exchange. Once this transaction has taken place, the funds are sent out to the recipient and arrive in their account in their native currency. The transaction is tracked, and the result is a cross-border payment that is faster than ever before.
Success across the board
According to both Brian Harris, Chief Product Officer at Currencies Direct and Asheesh Birla, Senior Vice President of Product at Ripple the trails were a resounding success where the results spoke for themselves.
Trials like these might be the first to shifting the market from a speculative affair towards the intended purpose for blockchain enabled technologies.