Ripple uses a digital asset called XRP as a part of Ripple’s initiative on making cross-border payments massively efficient for corporates. As mentioned by Brad Garlinghouse, the CEO of Ripple at Money 20/20, they use XRP because it’s a 1000 times faster and cheaper than Bitcoin transactions.
The utility of XRP is such that it is the most efficient digital asset to solve the problems related to cross-border payments. Ripple is building vertically on top of the XRP’s ecosystem, as a payments company.
On being asked by CNBC about why the big corporations and banks that they have signed up with, are using their products but not necessarily using the XRP token and what’s the value of XRP if it is not being used on a wide scale now, Brad Garlinghouse stated:
”The first problem that Ripple focused on is engaging with those banks to solve the real world problems for them. So, we’ve been successful in signing up over a 100 banks, using a product we call Xcurrent. Xcurrent allows two banks to settle in real-time, today that takes days, its very expensive, and has a very high air-way as high as 6%. That works well if two banks already have a real-time, if we wanted to go to a third bank, where we don’t have liquidity, where we dont have a pre-funded account that’s where product Xrapid comes into play. xRapid uses XRP to fund real-time liquidity, so no longer do I have to pre-fund.”
Brad, also added that there are trillions of dollars parked around the world pre-funded between banks, between corporate, and corporates at banks and if they can make those trillions of dollars efficient, then they will be successful in making the whole global financial ecosystem more efficient.
CNBC also asked when does XRP become more useful to these financial institutions, to which Brad replied stating,
“We launched xRapid, the product late Q3 earlier Q4 BETA version early last year and we now start our first pilot customers on xRapid in late Q4, we have six more in Q1. These are big names like western union, mercury effects, and money gram. These are companies moving a lot of money, what we found is that xRapid is saving them 40-70% compared to their existing tools for manging and speading the liquidity around. xRapid is doing exactly what we though and we expect to into production from BETA with that product very shortly, as we continue to move we will see more companies, banks and financial institutions to get on board”.
Mogmo, a Twitter user commented on this,
“Spread the word..it’s a clear day today.
Tachin Rakmanusa, a crypto investor commented,
“Everytime i look at
@bgarlinghouse I alway think of the young Barry Gibb of the bee gee”
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