Something is brewing between Ripple Labs and Bank of America. Why you might ask? They keep finding themselves in the same rooms together, meet up after meet up, conference call after conference call, and discussion after discussion – all surrounding payment systems that the large bank is considering implementing.
But something of note is happening this week that we are sure will need to be cataloged. In a gathering, last week representatives from Bank of America and others discussed their partnerships with Ripple and the ‘go-forward’ payment processing functionality of the firms’ products.
Other banks and financial firms have discussed the same with Ripple: MUFG Bank, WestPac, Standard Chartered, Banco Santander, American Express, Siam Commercial Bank, and SBI. Clearly, Bank of America would be the biggest name and ‘get’ for Ripple Labs as of yet.
Still, from that above group, headliners being Bank of America, American Express, and Banco Santander – who all possess global presences and brands of scale, are partners that any crypto brand would love to add to their client list. Ripple has obviously rolled out the red carpet for these brands and made a commitment to doing whatever is necessary to partner with them.
Ripple continues to make other announcements that have been highlighted over the past couple of weeks connected to their ever developing payment systems.
Ripple has confirmed the launch of xRapid, a cross-border remittance solution built on the top of Ripple’s proprietary blockchain, last month. The announcement had caused an abnormal bull run in XRP price action, bringing its value up over 100 percent in just a week. The excitement, however, dried off as long position holders began to exit their position on new intraday highs, causing a selloff.
Some of the biggest companies have already nodded to test Ripple xRapid system on their frameworks. These companies include names like MoneyGram, Western Union, Mercury FX, and Cambridge Global Payments. An excerpt from the Ripple website:
“xRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience. Because payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. xRapid dramatically lowers the capital requirements for liquidity.”
The speculators are expecting these announcements to continue and remain a catalyst for $XRP price action through the end of the year. The team announced that it will launch the system in October (which did actually happen), but the actual date of its commencement remains unclear. Unclear or not, having Bank of America and others in the room partnering with you to launch your product is meaningful. Very meaningful.
To the extent that Bank of America, Banco Santander and others will use Ripple’s product line once is it launched and available daily client customer transactions also remains to be seen. But there aren’t a dozen cryptocurrency and blockchain firms having these kinds of conversations and building this type of architecture.
In fact, you could count on one hand the other blockchain/crypto firms that are involved, to this serious depth, not only building use case products but actually on the precipice of executing those exact use cases.
While some in the crypto community may scoff at Ripple’s ambitions and the way they go about their announcements, there is real substance involved. Bank of America doesn’t send reps to just anywhere for a nice cup of coffee – they don’t need to based on their reputation and scale.
We expect more and interesting announcements to occur throughout the rest of 2018. Should they rise to the level of actual news and use case seriousness, we will bring it to you.