Things are looking great for Ripple. By Ripple, I mean Ripple Labs, the company formerly known as OpenCoin that created a modern-day SWIFT challenger, a network that has good chances of out-competing the dinosaur network created more than 50 years ago.
However, as great as the times are for the Ripple company, there is little benefit the XRP holders will get from this. Ripple executives are often contradictory in their statements on the matter of importance XRP has in their network:
Of the 200 partnerships Ripple has, ONLY eight actually use XRP the cryptocurrency.
ZipRemit is “Using #xrp from @Ripple is revolutionizing the way our entire business operates. For years our team parked huge amounts of capital globally to deliver the services our clients expected. Now we can move money like information, that’s game changing”. The company is registered way back, in 2015, a real financial behemoth. This a minuscule startup, with almost no search popularity before deciding to use XRP. This was probably a publicity stunt by the company, which is a good marketing move.
Cuallix is one of the first companies to use xRapid and XRP. However, it is hard to find much about them on the internet – they also seem to be a rather obscure bank with no significance in the financial circles.
SBI is the biggest xRapid and XRP user and has tight connections to the overall Ripple project as one of the bigger investors in the Ripple company. This company is the only xRapid customer worth mentioning that would not cause a snickering and scorn among serious financial players.
JNFX is not a bank, it is a foreign currency broker, “specialists in non-speculative trading”. So, a forex broker, that is “huge”.
SendFriend is essentially an app for Philipino expats to send money back home. So, again, not a bank but a small startup.
Similar to SendFriend, the third customer of xRapid is another startup called TranspayGo with “massive” 7800 transactions per month.
FCTS is a scandinavian startup, a e-money and prepaid issuer based in Stockholm. So, another not a bank.
And finally a bank – Euro Exim Bank, a 7 years old bank headquartered and licensed in St Lucia and with a representative office in London that specializes in providing financial services to small and medium-sized enterprises (SMEs), regardless of where in the world they are located.
This means that the headlines showcasing Ripple’s partnerships with more and more banks are good — Ripple the company is succeeding — but also don’t mean much for XRP gaining adoption.
Now this isn’t to say that banks will never adopt xRapid (and start using XRP). In fact, this has been a part of the Ripple business plan from the very beginning. Get banks using xCurrent and then cross-sell them into xRapid. Banks may come to love xRapid.
Or they might not.
Ripple itself sees its payment system as the future global standard for interbank payments, enabling cost-effective and traceable payments in real time. In 2018, the National Bank of Kuwait followed partners such as the Japanese bank Mitsubishi UFJ Financial Group and the Malaysian CIMB Group Holdings Bhd into RippleNet.
Which applications from the Ripple product range are to be used, however, left both sides open. It is also questionable whether Ripple’s xRapid platform or the XRP token will play a role in the bank’s concept in the future.