While Ripple has been able to sign up a lot of banks to use its xCurrent technology, the same cannot be said for xRapid. This is because the xRapid project went live a few months ago and it requires a little more convincing to get banks to use the XRP token. Well, Ripple has signed up a so-called London-based bank, Euro Exim Bank to use it XRP token for the xRapid technology.
Ripple Signs Up Euro Exim Bank For xRapid
Euro Exim Bank focuses on financial services for import and export companies. The bank will start using xRapid for international payments in the first quarter of this year. The head of compliance and operations at Euro Exim Bank, Graham Bright, said that they had some problems with Swift that propelled them to seek out another cross-border payment solution.
XRP (XRP) Price Today – XRP / USD
The CEO of Ripple, Brad Garlinghouse, must be excited about this new partnership. This is because in 2018, he said that some leading banks in the traditional financial sector will start using xRapid because of its liquidity. He also said that by the end of 2019, dozens of banks will be using the technology.
While Euro Exim Bank is commonly called a London-based bank, the fact is that it isn’t. It is an offshore bank that has an office in the United Kingdom and is registered as a small company there but not as a bank. The official website of the company classified it as a bank with a class A international banking license which was given by St. Lucia’s Caribbean tax haven. This allows the company to offer banking services from St. Lucia. However, it doesn’t authorize it to offer its services in St. Lucia neither does it service any entity or natural person in St Lucia.
What’s more, the website of the Financial Conduct Authority in the United Kingdom indicates that the license for Euro Exim Bank was terminated in 2017. This means the company doesn’t offer its regulated projects to people in the United Kingdom. It cannot accept deposits or lend money. So, it is not a London-based bank. It doesn’t render its services to any of the EU countries neither does it service Iceland, Norway or Liechtenstein. It has no onshore banking license but it accepts corporate deposits according to its website.
The Partnership Is Overrated
According to many press releases, the fact that Euro Exim Bank is using the xRapid protocol is a game changer for Ripple. The truth, however, is that it is going to do little or nothing to boost the adoption of XRP and xRapid. The bank is looking for a cheaper alternative to Swift for cross-border payments solutions. This means it is the same as the other four payment service providers who signed up for xRapid last year. In fact, using Ripple’s xCurrent for trade financing is a more encouraging prospect from the bank than using xRapid.
The real game changer for Ripple would be for a major clearing bank like Citigroup decides to use xRapid. This would certainly be a game changer for Ripple because many other financial institutions will follow Citigroup’s lead. If Ripple is to take a share from Swift’s market capitalization, a lot of work still needs to be done.
Do you think Ripple will be able to convince major clearing institutions to use its xRapid protocol?