Ripple’s xRapid cross border payment service allows customers to transfer funds using XRP. This makes transactions quicker and more affordable.
Ripple’s cryptocurrency XRP (+12.55%), which is used in its payments network, rallied to a five week high Wednesday after it said it was targeting the $1.8 Billion Filipino Remittance Corridor.
The cryptocurrency traded at $0.74 during European hours. This was the highest level since June 21, and represents a 13% increase on the day.
Ripple announced that Japan’s money-transfer provider SBI Remit and the Philippines’ mobile-payment service Coins.ph had teamed up to send remittance payments to the Philippines through Ripple’s On-Demand Liquidity (ODL). Buyers stepped in at $0.65
XRP jumps to five-week high. Source: TradingView
Nearly $2 billion is sent annually by Filipinos living in Japan to their home country. Ripple says it is expensive because Japan has the highest remittance cost in the world. Ripple pointed out that it’s nearly twice the amount of the average G-8 country remittance cost.
ODL utilizes Ripple’s xRapid cross border payment service. Customers can transfer funds using XRP. This makes transactions much faster and more affordable.
Ripple stated that this is Ripple’s first implementation of On-Demand Liquidity in Japan. This sets the stage for more adoption of crypto-enabled service in the region. The two companies can leverage the digital asset XRP for pre-funding to free up capital and speed up their expansion.
This news follows a long-running battle between Ripple and U.S Securities and Exchange Commission (SEC), which heavily weighed on XRP at year’s end.
The SEC filed a complaint against Ripple in December for raising $1.3 million by selling XRP through unregistered securities offering. In the wider market bull run, XRP plunged 67% to $0.21 December and then rallied to $1.9 in April. The bull run in XRP was also halted by the May price drop in bitcoin (BTC), +6.17%). Recently, XRP dropped to $0.50.
Bitcoin trades above $40,000 as of press time, an increase of 1.72% over the previous day. The sentiment has shifted in favor of bulls recently and investors have been buying bullish bets or calls to secure continued upside. There could be stronger gains as the Federal Reserve (Fed), which is not likely to support concerns about the tapering or early unwinding of its stimulus program, will not do so today.
Matt Ryan, senior market analyst at Ebury said that policymakers will continue to be concerned about the recent rise in U.S. Inflation, which last month reached new multi-year highs.” The committee will likely highlight the risks to growth that have been triggered by the recent wave of virus infections caused by the aggressive spread by the delta variant.
Ryan does not expect a formal announcement about QE tapering before the September meeting. The September meeting will release new macroeconomic and interest-rate projections. If the Fed’s monetary policy announcement hint at an early taper, Bitcoin could be subject to selling pressure.