The Euro Exim Bank has announced that it has successfully deployed Ripple’s xRapid technology.
The Head of Compliance and Operations at Euro Exim Bank, Graham Bright, said in an interview that subsequent to the implementation of the technology, the developers are ensuring that everything is working smoothly. He explained,
“We had already created a cloud-based blockchain enabled trade finance application, so it was a quick decision to join other global Ripple participants for the first project, namely using the xCurrent service where institutions are able to instantly settle cross-border payments with end-to-end tracking and visibility.”
Bright further stated,
“Euro Exim Bank is now working closely with technical resources at Ripple, and have successfully implemented the xRapid system for customers requiring low-value remittances in currencies and jurisdictions typically subject to large exchange costs, costly liquidity and delivery time and acceptance issues. Using underlying XRP digital assets (not mined or subjected to wild price fluctuation) through registered exchanges which minimise liquidity costs, local recipients may be paid in local currency, assisting the secure flow of money and reduce cash flow restrictions.”
It is interesting to note that the bank has not yet highlighted any data related to the real-world transactions carried out using the XRP-powered xRapid technology.
The US-based technology company Ripple Labs had launched the xRapid technology for commercial production in October last year.
xRapid is a software solution which is developed as a tool for banks and financial institutions to use the cryptocurrency XRP in a regulatory compliant manner.
xRapid enables the conversion of local currencies to XRP. Banks can subsequently send the digital currency to another nation, where XRP is converted back into fiat money. The entire process is designed to be fast and takes only a few minutes to execute. The time frame in which the available funds stay in the form of XRP is only a few seconds.
The St.Lucia-based Euro Exim Bank aims to connect corporate buyers and sellers with an effort to facilitate efficient and economical export and import of goods as well as services.
Even though the Euro Exim Bank is the first and the only bank to have implemented xRapid so far, however, the Chief Executive Officer at Ripple, Brad Garlinghouse, is of the view that dozens of banks will deploy the new technology in 2019.
Ripple’s other transborder payment technology xCurrent currently has more 200 financial institutions and banks onboard. Unlike the xRapid technology, xCurrent does not use the XRP cryptocurrency.