Bridging Fiat and Crypto?
Ripple plans to partner with three popular cryptocurrency exchanges and integrate its blockchain-powered payment system xRapid, according to an announcement made on the Ripple website.
The newest batch of partnerships include U.S.-based Bittrex, Bitso in Mexico, and Filipino Coins.ph. Each exchange will be using the xRapid product to bridge native fiat to XRP, and ultimately the cryptocurrency markets.
RippleNet offers its clients a selection of blockchain-based payment services, including xRapid, xCurrent, and xVia, each of which are aimed at solving issues with scalability, speed, and cost.
xRapid is just one service offered by the RippleNet platform, as explained by Ripple:
“Here’s what a 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.”
What Does This All Mean?
Whether people love or hate Ripple and XRP, by giving cryptocurrency exchanges fast and cost-efficient gateways to and from fiat currencies, adoption for digital assets takes a step forward. With XRP becoming one of the default cryptocurrencies for direct exchange with the USD, euro, and others, it detaches XRP from Bitcoin’s direct price influence.
Popular onramps into the digital asset sector (such as Coinbase) will also face fresh competition. With exchanges no longer needing to depend on USD-Tether, customers can use their favorite exchange to buy directly with fiat. Utilizing xRapid, “real” fiat can be exchanged easily, and Ripple’s other financial customers can benefit from this.
XRP Roller Coaster!
The bear market spares nothing – not even XRP! The token faces current losses of 90% from its all-time highs in late 2017. Ripple also faces lawsuits on whether XRP is a security, plus a barrage of regular scrutiny from the majority of the cryptocurrency community.
Despite this, Ripple and XRP have its own loyal community outside of the traditional Bitcoin crowd, without the bickering seen in other cryptocurrency followings!
Disclaimer: This is not investment advice. Nothing is guaranteed, and the blockchain and digital asset sectors are incredibly volatile. Please conduct your own in-depth research.