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Blockchain Revolution Series: Ripple’s patronage with banking continues, xCurrent to support Santander’s overseas payment operations
The popularity of Ripple has grown majorly based on a reputation of “banks' cryptocurrency”. Nevertheless, the great deal of clarity as to what exactly the Ripple ecosystem entails, about the mechanism of its payment solutions and in turn, how it drives the value of XRP, is lacking among the investors' community.
We’ve seen various banking institutions, such as Euro Exim Bank’s announcement to deploy XRP-driven XRapid and xCurrent for overseas payment transactions. Euro Exim Bank has collaborated with Ripple, to improvise better connectivity with banks, payment providers and digital asset exchanges via RippleNet so as to ease clients’ seamless experience to operate with money globally.
The reputed multinational financial services companies have already become part of RippleNet, such as, Japan’s MUFG bank and Spain’s Santander. MUFG has made announcements of its projects to a develop overseas transaction system between Japan and Brazil by deploying Ripple’s technology.
The latest instance is that the renowned Spanish banking giant is creating ‘payment corridors’ in Latin America employing Ripple’s xCurrent technology. The largest bank in Spain, ‘Santander’, would be associating Ripple’s xCurrent technology to establish payment channels that would let customers in Latin America send money to the US.
This implementation demonstrates Santander’s commitment to Ripple’s financial technology, which Santander estimated could save the banking industry $20 billion per year in costs related to cross-border payments, improve regulatory compliance and create powerful new value propositions for customers worldwide by 2022.
Elsewhere, Malaysia’s banking group CIMB has made an announcement that its pact with Ripple with an objective of developing blockchain-driven remittance platform for the South East Asian region.
RippleNet collaborates with Ria Money Transfer, which is a subsidiary of Euronet Worldwide and one of the largest money transfer businesses in the world. Ria likely to leverage the enterprise solution ‘xCurrent’ with an intention of optimizing Ripple’s robust global blockchain payments network.
With customers in over 155 countries, more than 377,000 locations worldwide, and $40 billion in money transfer volume per year, Ria is one of the largest payment service providers in the world.
The xCurrent enables banks to instantly settle cross-border payments with low fees and end-to-end tracking. On the flip side, Ripple will also be able to leverage Ria’s Digital Integrated Payments Cloud, a global fintech ecosystem that the company says allows its partners to disrupt the traditional payments space.
Coinbase has recently unveiled a payment service for their users of XRP and the USDC stablecoin (which was originally launched by the Circle affiliate CENTRE).
While RippleNet is a set of tools developed by Ripple so as to improve the global value transfer systems especially as it pertains to financial institutions. RippleNet is comprised of three payment solutions: xRapid, xCurrent, and xVia.
As a global payments network, RippleNet creates a modern payments experience operating on standardized rules and processes for real-time settlement, more affordable costs, and end-to-end transaction visibility. It allows banks to better compete with FinTechs that are siphoning off customers disappointed by traditional transaction banking services.
The Ripple company's ability to send cross-border payments quickly and efficiently is seen as a plus, but banks using the existing Society of Worldwide InterBank Financial Telecommunications (SWIFT) system are not likely to give up their dominance in the field quickly.