Including the use of Ripple Software and XRP Cryptocurrency at a Regulated UK Bank
Euro Exim Bank is a registered and regulated UK-based bank that has announced it will use Ripple’s xRapid software and the cryptocurrency XRP for cross-border payments. This is one of several new banking partnerships that Ripple revealed in 2019. At this point, it is working with over 200 banks and financial organizations.
xRapid Blockchain Offers Fast and Transparent Transactions
Ripple’s blockchain software is like other blockchain platforms in that it can provide transparent and real-time visibility of transactions to all stakeholders. For those with access to the blockchain ledger, there is no need to email queries or check confirmations. Stakeholders can simply check a link to the transaction which is immutably recorded on a blockchain network.
Euro Exim Bank plans to use both xRapid and Ripple for transactions in the first quarter of 2019, according to American Banker. Doing so would make the bank the first to use both Ripple software and the XRP cryptocurrency.
Marcus Treacher, global head of strategic accounts at Ripple explains why financial institutions are drawn to Ripple’s services:
“When you use XRP, instead of having to pre-park all your money in foreign accounts around the world, you hold your funds locally, under your control, your stability, your creditworthiness. It’s a much better position structurally.”
According to Treacher, XRP reduces the time it takes to move funds from one account to another in a different currency. The current system, SWIFT, can take up to three days whereas Ripple can execute the same transaction in two minutes.
Ripple has capitalized on the weaknesses of the existing SWIFT system. Graham Bright, head of compliance and operations for Euro Exim Bank explained that XRP eliminates the need to establish pre-existing bilateral relationships with foreign banks to hold reserves of foreign currency and process local fiat payments: “we saw the technology would let us easily and quickly originate payments without having bilateral relationships.” Bright happens to have worked at SWIFT for 20 years.
Ripple Has 200 Customers
Ripple confirmed it now has signed 200 banking and financial customer partnerships. In addition to Euro Exim Bank, it announced partnerships with SendFriend, JNFX, FTCS, Ahli Bank of Kuwait, Transpaygo, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual/USEND, and Rendimento. Brad Garlinghouse, CEO of Ripple said:
“We’re now signing two — sometimes three — new customers per week. We also saw a 350 percent increase last year in customers sending live payments, and we’re beginning to see more customers flip the switch and leverage XRP for on-demand liquidity.”
Of the new partnerships, Ripple has said that JNFX, SendFriend, Transpaygo, FTCS and Euro Exim Bank, will use XRP for settlement as well as Ripple’s blockchain products. Ripple seems poised to be a key player in driving the mainstream use of cryptocurrency and blockchain technology in the global financial system.