Potential use of Ripple products (xCurrent, xRapid)

I’m not sure how familiar people are with what Ripple (the company which created XRP, the cryptocurrency) is trying to do, so I thought of giving a little intro.

They’re using the XRP ledger/blockchain (XRPL) to provide interesting services to financial institutions. Recently they’ve acquired a 10% stake in MoneyGram, and MGI will use the xRapid product to reduce costs and potentially free up their cash assets, too.

xCurrent enables institutions to exchange currency IOUs on the blockchain.

xRapid enables institutions to settle instantly by using the XRP cryptocurrency/token. The institutions never have to touch the XRP cryptocurrency, as all the magic happens in the “black box” of the xRapid product.

Example: institution A has JPY, and wants to deposit USD into B’s account using xRapid.

What happens is this: xR exchanges JPY for XRP through some partner exchange/gateway, sends it over to some other partner exchange in the US, exchanges XRP for USD, and deposits the USD into B’s account. The exchange rates at both ends are known before committing to the transaction, and for smaller amounts (due to liquidity constraints) it looks like it’s a competitive way to transfer value cross-border, and it’s all settled in less than a minute thanks to near-instant settlement feature of the XRPL.

I know the focus is on other things, and that Evarvest doesn’t really want to deal with crpyocurrencies for the near future. However, this could eventually become of interest as a way to quickly settle deposits/withdrawals.

Another big player in partnership with Ripple is the Japanese SBI Group (https://www.sbigroup.co.jp/english/company/group/sbirippleasia.php) which recently launched a new product involving XRP: https://www.fxstreet.com/cryptocurrencies/news/ripple-partner-sbi-holdings-announces-vctrade-pro-services-201908012254


Disclosure: I hold XRP.


@m great intro and you’re right, cryptocurrencies are not on our roadmap yet. There’s a lot of regulatory/compliance issues currently with cryptocurrencies - regulators are also highly concerned over Facebooks Libra. This article on the topic is quite interesting:

I personally like Ripple as a company. They have a lot of potential, particularly as Ripple’s technology is most interesting for sourcing banking liquidity in real time without having to pre-fund nostro accounts (For others reading this that aren’t sure what a nostro account is, it’s an account that a bank holds in a foreign currency in another bank ie. a UK bank may hold a US dollars account with a US Bank and visa versa).

You may find this article from 2018 on Ripple and their tech being used by banks for international money transfers interesting:


Hi @StephBrennan, and great to know you’re already up to date on this! The resistance to Libra is quite interesting, especially since there’s fundamentally nothing special about it: we’ve had “stablecoins” (digital assets backed by something) for quite a while. Ripple CEO actually called them out for being arrogant :slight_smile:


Where I don’t agree with Brad is in that Libra would not be exactly a “new” fiat currency. It’s simply a tokenization of a basket of existing currencies. Anything can be tokenized this way. It would actually be interesting to think about tokenizing something else, like a basket of index tracking ETFs. That way anyone could “own” a piece of global economy, and also use it to buy bread. The future will definitely be interesting :slight_smile:


@m interesting article, thanks for sharing, and very true, we’ve had ‘stablecoins’ for a while.

There’s definitely a lot of potential with stablecoins, particularly in emerging markets where the unbanked population is higher and fiat currencies are less valuable.

It’s certainly an interesting point you raise about “owning” a piece of global economy, and also using it to buy bread.

I really like this idea. It’s why I like the idea of Fintech’s like Stash adding a debit card, keeping your money invested until the moment you actually need it. Of course, there’s volatility in the markets to consider, but with stablecoins designed to minimise pricing volatility, they could make a lot of sense in the scenario you mentioned.

Definitely, the future will be interesting :slight_smile:


Thought this was an interesting article following on from the same theme as above.