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The Current State of Ripple Labs’ xRapid Platform after its October 1st Launch

Oct 19, 2018

 

  • On October 1st, 2018, Ripple Labs announced the official launch of its xRapid platform to facilitate cross-border international transactions -- in the platform's beta test last spring, participants reported international transaction cost savings between 40% and 70% and transaction times of just over 2 minutes, compared to the typical average of between 2-3 days. The xRapid announcement by Ripple Labs also detailed that Catalyst Corporate Federal Credit Union, Cuallix, and Mercury FX had already deployed the xRapid platform into their operations.  
     
  • Since the launch of xRapid, Ripple (XRP) has fallen 21.3% from USD$0.581572 to USD$0.457725. 
     
  • One potential reason for the decline may be that the launch of xRapid was already priced into the value of XRP. On September 17th, 2018, Sagar Sarbhai, Ripple Labs’ Head of Regulatory Relations for Asia-Pacific and the Middle East, appeared on CNBC and hinted at the launch of xRapid, saying, “I am very confident that in the next one month or so, you will see some good news coming in where we launch the product live in production.”  
     
  • Following Sarbhai’s appearance on CNBC, XRP’s value spiked +106.2% from USD$0.277251 on September 17th, 2018 to USD$0.570798 on September 22nd, 2018 -- perhaps the three xRapid launch partners of Catalyst Corporate Federal Credit Union, Cuallix, and Mercury FX underwhelmed investors, causing the -21.3% pullback in XRP since the official announcement of xRapid.
     
  • After the official launch of xRapid, largely positive news has surrounded Ripple:
     
  • On October 2nd, 2018, Ripple Labs announced the integration of RippleNet, Ripple Labs’ pre-existing cross-border payments platform, into OnePay FX, an application to facilitate cross-border payments that is owned and operated by the USD$80 billion Spanish bank, Banco Santander. 
     
  • On Wednesday, October 17th, 2018, news broke of a partnership between Ripple Labs, digital payments firm, Coil, and the Bill and Melinda Gates Foundation to focus on the implementation of Ripple’s Interledger Protocol to support pro-poor payment systems, or systems that will specifically help unbanked individuals -- Ripple's Interledger Protocol is used in all of its cross-border payment platforms.  
     
  • Yesterday, on October 18th, 2018, Viamericas, a licensed money transmitter with 76,000 locations in 29 countries, announced that it has integrated the xRapid platform into their daily operations. 
     
  • MoneyMatch, a Malaysian based fintech startup, reported yesterday that it has successfully completed a cross-border payment from Malaysia to Spain using RippleNet -- this marked the first time an international payment in Malaysia had been made using blockchain technology.
     
  • XRP’s 21.3% decline since the announcement of xRapid’s launch is likely a correction to cryptocurrency investor’s overreacting to Sarbhai’s appearance on CNBC. Despite XRP’s decline, largely positive news has surrounded XRP and Ripple Labs -- the company is slowly gaining institutional support from global banks while partnering with notables like Bill and Melinda Gates. Ripple Labs’ xRapid platform’s reputation is bolstered every day as major financial institutions continue to use the cross-border payments solution to conduct international payments with low fees and short transaction times without issue. As we move closer to 2019, further institutional support of xRapid is critical to spur a price breakout in XRP.