What's Happening Today?
Ripple's (XRP) CEO Brad Garlinghouse will be making a huge announcement on CNBC Fast Money today, 07 March 2018 @ 1700 (5 pm EST). This announcement was recorded due to the "Breaking News" of Gary Cohn's resignation. This infuriated the crypto world because the Coinbase interview and announcement was cut short and the Ripple interview was pushed to today.
Coinbase President Asiff Hirji made a huge announcement yesterday that Coinbase would be offering an Index Fund. The reason?
"It's a very simple to use, easy way to get exposure to the crypto-assets that we offer on our exchange."
The Coinbase Index Fund will give accredited U.S. investors exposure to all assets listed on the company's current exchange, GDAX. The currencies will be weighted based on market capitalization. Much like how the Dow Jones Industrial Average is a basket of 30 stocks meant to give a sense of the American economy, this fund will try to reflect major trends in the cryptocurrency market. The whole interview can be seen here.
What's to come to come from the Ripple announcement? No one knows, but here is a teaser.....
— CNBC's Fast Money (@CNBCFastMoney) March 7, 2018
Besides the CNBC Fast Money debacle, what else has happened?
- Cambridge Global Payments — a subsidiary of FLEETCOR Technologies and a leading global provider of commercial payment solutions — is launching a pilot program to use XRP in cross-border payment flows through xRapid.
- The Japan Bank Consortium will release a groundbreaking smartphone application called “MoneyTap”— powered by Ripple’s blockchain technology — to allow customers of the bank consortium to settle transactions instantly, 24 hours a day, seven days a week.
Cambridge Global Payments
Cambridge currently has over 13,000 clients around the world and handles $20 billion in international transactions annually. Incorporating XRP in those flows will provide their clients with a cross-border payments experience that is significantly faster, cheaper and more transparent.
Cambridge works with businesses, large and small, to facilitate critical and secure payments for fuel, toll, lodging, and general payables through its own proprietary payment networks in North America, Latin America, Europe and Australasia.
These international payment flows allow for a streamlined experience for customers who depend on Cambridge to ensure their businesses stay healthy and expand. With xRapid, Cambridge aims to provide an even better experience for those customers.
Mark Frey, chief operating officer for Cambridge Global Payments, is confident that blockchain powered solutions like xRapid can not only help Cambridge improve their customers’ payments journey, but also spur critical innovation in their industry.
“We are excited for the insights this pilot program is expected to deliver, and we will use that information to help both Cambridge and FLEETCOR develop our use cases for blockchain in international payments. We strive to deliver best-in-class cross-border payments services, with speed and transparency. We look forward to exploring how Ripple can help us continue to improve the customer experience using new technology.”
As Cambridge and more financial institutions begin to use xRapid to source liquidity, capital locked up around the world required in today’s fractured system for international payments can become available and put to use in new ways.
Ripple’s director of business development, Danny Aranda, believes that partners like Cambridge recognize the revolutionary potential using XRP has for financial institutions.
“We’re focused on working with partners like Cambridge that understand the benefits of digital assets and are serious about using XRP to overcome the inefficiencies in the global payment system,” said Aranda. “We look forward to collaborating with Cambridge during this pilot to enhance the speed and transparency of cross-border payments for their clients.”
The efficiency of cheaper and on-demand international payments using digital assets like XRP together with the release of dormant capital, is an important step forward toward Ripple’s mission of establishing an Internet of Value, where money can move like information.
The Japan Bank Consortium
“MoneyTap” allows the bank consortium customers to make instant domestic payments and only requires a bank account, phone number, or QR code.
What’s more, MoneyTap helps shed the costs associated with existing banking and ATM fees that are currently applied to domestic money transfers in Japan, making those payments not just faster, but cost less overall.
“We are proud to leverage Ripple’s blockchain technology through our new mobile app, MoneyTap, to improve the payments infrastructure in Japan,” said Takashi Okita, CEO of SBI Ripple Asia.
“Together with the trust, reliability and reach of the bank consortium, we can remove friction from payments and create a faster, safer, and more efficient domestic payments experience for our customers.”
Ripple wants to revolutionize domestic and cross-border payments
“MoneyTap” is the first mobile app of its kind to be developed and used by multiple, different banks in the country.
Three members of the Japan bank consortium: SBI Net Sumishin Bank, Suruga Bank and Resona Bank will be the first to go live on the mobile app in autumn of 2018. This will be followed by a staggered roll out to the rest of consortium.
The Japan bank consortium, led by SBI Ripple Asia, is comprised of 61 banks covering more than 80% of all banking assets in Japan. MoneyTap will have the potential to provide on-demand payments to the vast majority of the country through this consortium.
Flexibility with domestic payments is limited in Japan: transactions must occur on weekdays and between 8:30 am and 3:30 pm or risk delays.
While there are discussions to change the window on the current banking rail system to make it accessible 24 hours a day and seven days a week, the cost of implementing it would be high.
Ripple has long focused on providing solutions to the problems associated with cross-border payments. Currently, over 100 financial institutions use xCurrent and Ripple has made recent new additions to pilots of xRapid that incorporates XRP into on-demand international payment flows.
However, the power of blockchain can be applied to solving domestic payment issues as well.
“The release of the MoneyTap mobile app shows Ripple’s continued commitment to provide its partners across Asia and the world with blockchain-powered solutions that dramatically improve the customer payments journey,” said Emi Yoshikawa, director of joint venture partnerships at Ripple. “We’re proud to provide this production-ready technology that not only improves the international payments experience, but also have applications for domestic payments infrastructure.”
Removing friction from both domestic and international payments is central to Ripple’s mission of establishing an Internet of Value, where money can move like information — instantly.