Ripple’s xRapid is being explored by another financial institution – Catalyst Corporate Federal Credit Union
Catalyst Corporate Federal Credit Union, a wholesale cooperative financial institution headquartered in Texas, United States, recently revealed that the firm is currently researching on Ripple’s blockchain solution.
Tweet by Catalyst Corporate:
“We’re making waves with
@Ripple! See how #blockchain may provide #CreditUnions with faster cross-border payments at much lower costs.”
Catalyst Corporate FCU is was established in the year 1975 and is popularly known for serving over 1400 member and client credit unions throughout the USA. Their services include payment solutions, investment options, balance sheet management assistance, and back office support for their clients.
As the demand for global remittances is increasing drastically, the firm believes that Ripple’s technology can reduce the time taken for each transaction from several days to a few minutes. This will eventually help credit unions stay along with the fast-moving market trends.
While discussing about the U.S. global remittance flows from the U.S. to Mexico, the Chief Operating Officer of Catalyst Corporate FCU, Brad Ganey said:
“Ripple’s average xRapid payment from the U.S. to Mexico takes less than three minutes. As such, Catalyst Corporate will target sending its first international transaction via Ripple’s network to Mexico”
He further added:
“blockchain transactions could offer credit unions additional opportunity, as well, considering cross-border e-commerce transactions are expected to reach almost $1 trillion by 2020”
Ripple’s xRapid is a technology which reduces the cost of cross-border payments and increases settlement speed. xRapid uses XRP as a bridge currency to enable the settlement of value. The liquidity for the transaction to be conducted is sourced from XRP, reducing the need for vostro and nostro accounts to be held.
Ripple has partnered with various financial institutions who are adopting xRapid as their solution for cross-border payments.
Viamericas, is one of the recent partners of Ripple, who uses xRapid and cut down payment fees by up to 70% for their cross-border payments. The technology is also being used by MoneyMatch, a Fintech startup announced that they had used xRapid to send money from Malaysia to Spain.
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