Ripple company has reportedly entered into partnership agreements with three three crypto exchanges.
The contracts have been signed with US-based Bittrex, Mexico's Bitso and Coins. Ph in the Philippines. These exchanges will now use Ripple's cross payment system – xRapid. Notably, the agreements also come as a part of the plan for the establishment of a healthy global crypto exchange partnership.
With the cross-border payment solution xRapid the trading platforms will become able to offer high-speed and cost-effective money transferring in US dollars, Mexican peso and Philippine peso via XRP. Specifically, the system converts fiats to XRP and then exchanges it back to fiats.
"Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. That makes today’s announcement an important development for xRapid," said Cory Johnson, Chief Market Strategist at Ripple.
Ripple spokesperson commented that they have made successful xRapid trials, so, for now, the production phase is to begin in 2018.
Cory Johnson also added having a partnership with crypto exchanges Ripple will be able to secure smooth payments of financial institutions in different currencies. Notably, it was reported that during the trials xRapid helped to save 40-70% of transaction cost for payments from the USA to Mexico. The companies that took part in the tests also noted the high speed of transactions (about 2 minutes) compared to the traditional payment means (2-3 days).
However, the senior crypto expert in Ripple expressed some doubts that this technology would be massively applied to the banks' operations due to low scalability and privacy issue.