Ripple, a real-time gross settlement system, currency exchange, and network rose more than 78% percent Friday to a high of 77 cents, bringing its gains this week to almost 183%, according to data from Coinlib. Its market capitalization was increased to almost $27 billion, to become the world’s second most valuable cryptocurrency after Bitcoin.
With offices in San Francisco, New York, London, Sydney, India, Singapore and Luxembourg, XRP has more than 100 customers around the world. Ripple gives swift experience to send money worldwide using the power of blockchain technology. By joining the Ripple network, some global network, financial institutions are processing their clients’ payments anywhere in the world, reliably and cost-effectively. Banks and payment providers are using the digital asset XRP to further reduce their costs and access new markets.
Reason Behind Surge of Ripple
The rate was increased because of the rumors of a new product. According to CNBC, an executive at XRP said that this week XRP was making progress with its xRapid product, aimed at solving issues like transaction speed by using cryptocurrency XRP. Prior to this, Ripple was one of the worst performing cryptocurrencies this year. At one point this summer 2018, XRP was down more than 91% from the high.
Sagar Sarbhai, head of regulatory relations for Asia-Pacific and the Middle East at Ripple told CNBC that,
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.
Ripple is based around a shared public ledger, the XRP Ledger, which utilizes a consensus process that enables for payments, exchanges, and remittance in a distributed method. The network can work without the Ripple company; among its validators are companies, internet service providers. The ledger implements the decentralized native cryptocurrency called as XRP. Ripple has explained its xRapid product as using XRP as “bridge” between currencies, which authorities say enables payment providers and banks to process faster cross-border transactions.
On Friday, XRP was up 60.80% in 24 hours, up 120.12% on the week and up 82.17% on the month on a list price of $00.6050. The XRP market cap is $22.61 B with a circulating supply of 39.37 B $XRP. $XRP/USDT is trading between a 24hr high of $0.773 and a 24hr low of $0.468 as of writing this article.
The company has also partnered with various high-profile financial organisations such as Santander and American Express. The only difference is that these partnerships have been mostly focused on another product called xCurrent. Ripple’s Sarbhai further explained that more than 120 banks have joined hands with Ripple and they are using the blockchain-based product xCurrent. Firms testing the product are money transfer giants Western Union and MoneyGram and payment upstarts MercuryFX, Viamericas, and Cuallix.
Ripple’s website explains the open-source protocol as “basic infrastructure technology for banking transactions – a neutral utility for financial institutions and systems. The protocol enables banks and non-bank financial services companies to use the Ripple protocol into their own systems which enable their clients to utilize the service. Right now, Ripple requires two parties for a transaction to take place: first, a regulated financial organization which holds funds and gives balances on behalf of clients. Second, “market makers” such as hedge funds or currency trading desks provide liquidity in the currency they want to trade in.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital said that
Investors are “buying the news” that payment company Ripple is close to launching a new product for banks that relies on the use of XRP.
Ripple has been increasingly adopted by banks and payment networks as settlement network technology. A few days ago, Bill Clinton, an American politician who served as the 42nd President of the United States from 1993 to 2001 delivered a keynote at Ripple Swell conference. Former President also participated in a question-and-answer session. The Q&A session was hosted by Gene Sperling who was former National Economic Council director and advisor. He had served under both Bill Clinton and President Barack Obama and is currently on Ripple’s board of directors.
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