For xRapid to be most successful, there needs to be a healthy ecosystem of digital asset exchange partners around the world. These exchanges allow xRapid payments to move from one currency – into XRP – and back into another currency quickly and efficiently.
Here’s what an xRapid payment flow will look like from the U.S. to Mexico:
→ A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex.
→ The payment amount in XRP is settled over the XRP Ledger.
→ Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account.
In May, Ripple announced that financial institutions piloting xRapid saved 40-70% on average compared to traditional foreign exchange brokers who facilitate cross-border payments. The payments also settled in two minutes or less compared to two to three days from traditional methods.
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