- Thomson Reuters
- Ripple, the company behind the cryptocurrency XRP, appears to be picking up steam among traditional financial players.
- The company on Wednesday announced it had added two payments companies to its roster of clients.
One of Ripple‘s flagship products appears to be picking up some steam.
The financial technology company, best known for its native digital currency XRP, on Wednesday announced that two payment companies – IDT Corporation and Mercury FX – would begin using its xRapid product to settle certain transactions.
Asheesh Birla, the vice president of product for Ripple, told Business Insider earlier this year that the firm was speeding up plans for xRapid, an XRP-powered product that seeks to enhance cross-border payments for emerging markets. The product caught the attention of the media earlier this month after it was announced that MoneyGram, one of the largest money-transfer companies in the world, would begin testing it.
The New Jersey-based IDT Corporation, which already uses digital assets to facilitate some transactions, will use xRapid to enhance such operations, according to senior vice president Alfredo O’Hagan.
“We’re excited to pilot Ripple’s xRapid solution for on-demand liquidity,” O’Hagan said in a statement. “We expect that xRapid will enable us to settle more transactions in real time and at a lower cost.”
Alastair Constance, the CEO and founder of Mercury FX, said in a statement that cutting settlement times could shave billion of dollars “in unnecessary intermediary fees.”
A representative for Ripple declined to say whether IDT Corporation or Mercury FX would pay Ripple to use xRapid.
“We don’t disclose terms of our deals with customers,” the person told Business Insider via email.
The news suggests Ripple is making inroads among traditional financial services players. Ripple stands out in the cryptocurrency world as a company that seeks to partner with, rather than topple, the existing financial system. Its approach has drawn investors to its digital currency XRP. It’s up more than 500% over the past three months, according to Markets Insider data.
Still, some market watchers are skeptical of whether Ripple will be able to attract big-bank clients. The New York Times reporter Nathaniel Popper said he was unable to verify many of the cooperating banks the company had previously announced.
Ripple CEO Brad Garlinghouse denied those claims.