Ripple has announced that 13 financial institutions have joined its RippleNet ecosystem, meaning that over 200 banks and fintech companies are now utilizing the various solutions offered on the platform.
Five of the thirteen institutions will reportedly use XRP for liquidity while eight will not. Of those to utilize the XRP cryptocurrency, Ripple named JNFX, Transpaygox, SendFriend, FTCS, and Euro Exim Bank.
Euro Exim Bank director Kaushik Punjani lauded the partnership, noting that the move gives it an opportunity to “offer new payment channels and ways to source liquidity.”
He added that the collaboration would benefit all their customers, from large corporations to individual payment remitters. These customers have traditionally had limited avenues of obtaining funds as well as faced costly or delayed transaction settlement.
“Working collaboratively with Ripple and selected counterparts, we have designed, tested and are implementing both xCurrent and xRapid in record time, and we look forward to the benefits these will bring our customers.”
Ripple CEO Brad Garlinghouse says that the company will continue to focus on providing customers with an opportunity to access cross-border payments that are cost-effective and timely.
Commenting about the new RippleNet entrants, Garlinghouse noted that 2018 saw almost 100 financial institutions begin to use RippleNet. At the moment, Ripple is “signing two—sometimes three—new customers per week.”
On growth in the ecosystem, he stated:
“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.”
Notably, many of the financial institutions and payment providers that have joined RippleNet over the last couple of years still do not use XRP to source for liquidity. Most of these institutions utilize the RippleNet settlement layer alongside payment networks of other institutions.
Ripple has in the past announced several pilot tests for its xRapid solution, the company’s enterprise solution that uses XRP to facilitate international payments.
Note that RippleNet and xRapid constitute Ripple’s nucleus in terms of the solutions that the company offers the financial world. The former primarily allows banks to collaborate with other institutions in making payments at very low costs.
xRapid, on the other hand, will enable banks to access instant liquidity via XRP.
In December last year, Spain’s BBVA advanced a $170 million loan to Porsche using Ripple’s technology stack. In the same month, Ripple and UAE Exchange announced a partnership that should see the exchange launch a remittances platform to serve the lucrative Asian market.
As 2019 moves into gear, Ripple will very much rely on improving sentiment, not only in the overall crypto market but more specifically around the potential for XRP to be the cryptocurrency that transforms international money transfer.
That positivity will in essence center on regulatory clarity, with Ripple itself likely to benefit from becoming more regulatory-compliant as a company.
Ripple (XRP)’s price currently hangs around $0.37 against the U.S. dollar, with data on XBT.net showing that its 24-hour and 7-day movement at 1.53 percent and 1.13 percent respectively.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.