For Ripple, there’s no slowing down on its partnership spree. On April 26, 2018, the world’s third-largest cryptocurrency (by market cap) announced the addition of five new clients – from Europe and Asia – for its corporate payment solution, xVia.
According to a press release, the five companies – FairFX (U.K.), RationalFX (U.K.), Exchange4Free (U.K.), UniPAY (Georgia), and MoneyMatch (Malaysia) – would make use of Ripple’s xVia product for facilitating remittances and wire transfers.
Provided as an API extension, xVia helps to reduce operational costs while increasing remittance speed; alongside delivering complete transactional transparency courtesy of Ripple’s private blockchain.
Ripple’s Vice President of Product Asheesh Birla, said:
“By tapping our global network with xVia, our customers now access new markets quickly and cost efficiently. All of these customers run into the same problem: building bespoke connections to banks and networks all over the world.”
Further talking about the benefits, Birla adds that traditional banking is “expensive and time-consuming.” In contrast, xVia allows partner institutes to serve new demographics, as it utilizes the blockchain to process payments.
Echoing Birla’s thoughts was James Hickman, Chief Commercial Officer at FairFX:
“It will also enable us to deliver on our commitment to give customers the most transparent, efficient and truly global money transfer experience possible using RippleNet.”
Simply put – If bank X and bank Y are not partners with each other, but they are partners with Ripple, the latter will facilitate a seamless exchange between the two banks, as they registered on a unified blockchain.
By maintaining a singular, standard connection on xVia, Ripple claims that its partners do not face the “high failure rates” commonly associated with traditional banking systems.
While it’s easy to mistake Ripple as a singular entity, there’s much more to the blockchain-based payments provider.
Ripple Labs, the parent company of XRP, offers a range of products and services which do not explicitly make use of the XRP token. Apart from the xVia API, Ripple provides the xRapid, which sources “on-demand liquidity,” and the xCurrent, which enables banks to process global payments.
Ripple Partnerships No Guarantee of XRP’s Success
Previously, BTCManager reported on XRP’s fallacy pertaining to their $29 million educational donation and widespread reports of their large number of banking partners. While the partnerships and contribution represent blockchain adoption and heartfelt philanthropy respectively, new investors can be misled into viewing the company’s token as socially responsible and a corporate-favorite.
However, according to their website, the XRP is provided as “optional access,” i.e., in addition to their core business services.
This goes to show to that while a rising number of partners indicates blockchain adoption, it doesn’t necessarily prove XRP usage; a point about which the company should perhaps be more transparent.
XRP’s Q1 2018 Performance
On April 25, 2018, Ripple tweeted about XRP’s impressive Q1 performance in 2018, which can be attributed to its wide clientele.
— Ripple (@Ripple) April 25, 2018
The report is said to “enhance the transparency of the Ripple,” and present all commercial details publicly.
Highlighting XRP’s rise, the report said:
“While the total market capitalization of all digital assets was the same on both November 24, 2017, and March 31, 2018, XRP’s share of that market capitalization doubled, rising from 3.56 percent to 7.57 percent.”