Ripple Announces Successful US-Mexico Transfers Using xRapid

Ripple has released results of pilot runs of its xRapid service. The tests were conducted by sending money to Mexico from the US.

According to the press release, financial institutions using the service paid between 40 and 70 percent less than they usually pay traditional foreign exchange providers for the same service.

Reportedly, transactions with xRapid took minutes, while the average cross-border transfer using traditional means takes 2-3 days.

The part of the transfer that uses the XRP ledger lasts 2-3 seconds; the additional time is accounted for by "intermediary digital asset exchanges and local payment rails."

US to Mexico money transfer is a busy and competitive market. Until now payment providers have had to pre-fund bank accounts in Mexico or go through the banking system. There are trillions of dollars trapped in pre-funded accounts of this type worldwide, and the banks that are big enough to handle transfers on this scale are few, meaning that the market is not competitive.

xRapid works by sourcing the most competitive option from a selection of third parties, such as exchanges. A party is chosen, and the money is sent. That party converts the money to XRP and sends it abroad, where it is traded into the currency of the destination and transferred to the final account.

xRapid's expansion is reliant on XRP being available in that place.

sheesh Birla, SVP of Product at Ripple, said: “It’s encouraging to see positive xRapid results because they validate what many in our industry already know: certain digital assets have utility. XRP’s utility lies in its speed and scalability, which makes it the perfect fit for cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. The XRP Ledger can send 1,500 transactions per second.”

Paul Dwyer, co-founder and CEO of Viamericas, said: “We were very pleased with our pilot results. It’s clear that xRapid can lower Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term costs while increasing payment speed and transparency in a way that facilitates rigorous compliance controls. We believe that digital assets like XRP will play a key role in the future of cross-border payments, helping to safely address some of the structural inefficiencies of legacy settlement infrastructure as their adoption grows. We look forward to exploring next steps with Ripple.”