Euro Exim Bank is the first “bank” to officially announce the adoption Ripple’s XRP-powered xRapid. In their recent announcement, their head of compliance Graham Bright confirmed they have successfully integrated the xRapid technology.
Speaking on the matter, Bright said:
“We had already created a cloud-based blockchain enabled trade finance application, so it was a quick decision to join other global Ripple participants for the first project, namely using the xCurrent service where institutions are able to instantly settle cross-border payments with end-to-end tracking and visibility.” Bright continues, saying, “Euro Exim Bank are now working closely with technical resources at Ripple, and have successfully implemented the xRapid system for customers requiring low value remittances in currencies and jurisdictions typically subject to large exchange costs, costly liquidity and delivery time and acceptance issues. Using underlying XRP digital assets (not mined or subjected to wild price fluctuation) through registered exchanges which minimise liquidity costs, local recipients may be paid in local currency, assisting the secure flow of money and reduce cash flow restrictions.”
To date though, the bank hasn’t announced any information on the real-world transactions sent utilising the xRapid platform.
Hold your horses XRP holders …
Euro Exim Bank isn’t a London-based bank, as it is often claimed in the reports. It’s an obscure, offshore bank registered in a typical tax haven. It does have a London office registered as a small company in the U.K., but that’s not a bank. As this Forbes contributor investigates, Euro Exim bears little similarity with an institution that you would define as bank:
“Euro Exim Bank’s website says that it has a class A international banking license from the Caribbean tax haven of St. Lucia. This authorizes it to “carry on international banking business from St. Lucia.” But it does not authorize it to carry on banking business in St. Lucia, and the company’s website specifically says that it “does not provide any services to any natural person or legal entity in St. Lucia.” So, Euro Exim Bank is not a St. Lucia bank.
The U.K.’s Financial Conduct Authority (FCA) website shows that Euro Exim Bank’s U.K. registration was terminated in February 2017. At the present time, therefore, it is not licensed to “provide regulated products and services” in the U.K. Regulated products and services include the following:
- Accepting deposits
- Providing credit to consumers
- Giving investment advice
- Arranging deals in investments
Euro Exim Bank is not authorised to accept deposits or lend to customers. This is what banks do. So Euro Exim Bank is not a London bank. In fact it is not a licensed bank anywhere in the European Economic Area (EEA), which comprises the EU (currently including the U.K.) plus Norway, Iceland and Liechtenstein. It may be regulated by St. Lucia’s regulator, but that doesn’t make it a regulated bank in the U.K. or Europe. If you want to run an onshore banking business in the U.K., with access to the EU, you have to be licensed by the U.K. regulator. Euro Exim Bank isn’t.
As an offshore bank, Euro Exim Ban has no access to central bank liquidity or settlement services in any currency.
In fact, Euro Exim Bank does not have an onshore banking license anywhere in the world. “
As with a lot of Ripple partnerships, XRP holders will see tiny or no benefit from them. Especially partnerships with fringe “banks” that are completely blown out of proportion. An individual whale, a guy who stumbled onto crypto years back, can influence the market more than “banks” like Euro Exim, which is a sad reality check for hopium consumed XRP holders.