Ripple’s CEO, Brad Garlinghouse told CNBC on Tuesday that Ripple will have “dozens” of banks using their XRP Ledger, the open-source codebase that can send 1,500 transactions per second while utilizing Ripple’s XRP cryptocurrency.
“I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool,” Garlinghouse said during an interview at the Money 20/20 Europe fintech conference in Amsterdam, Netherland.
“You know, by the end of next year, I would certainly hope that we would see you know in the order of…dozens.”
Ripple is developing liquidity solutions that allow financial institutions and payments providers to minimize liquidity costs and increase payment speed and transparency for cross-border payments. One such solution is “xRapid”, a system aimed at institutions that have business in emerging markets and one that enhances real-time and less costly transactions in every currency.
xRapid works by sourcing the most competitive option from a selection of third parties, such as exchanges. Once a party is chosen and the money is sent into the xRapid system and converted into XRP, the money is then converted back into whatever currency is required at the other end.
Because xRapid’s utility lies in its speed and scalability – transactions with xRapid take minutes, while the average cross-border transfer using traditional means takes 2-3 days – large remittance providers, such as Western Union and Moneygram have begun piloting the platform in their businesses; so have others, including Cambridge Global Payments, MercuryFX and IDT.
XRP spiked to an all-time high of $3.75 in January of this year year. The crypto has since nosedived to around $0.67, as of Tuesday.
On this, Garlinghouse said:
“It’s still a nascent industry, the speculation in the market dominates the trading activity. I think it’s a matter of time until people better understand the different use cases.”
He also talked about Bitcoin (BTC), saying the crypto that traded close to $20,000 at the beginning of this year, is not the “panacea” to solve the problems that people thought it would.
“I think it’s (BTC) not going to be the panacea that people once thought it would be, where it would solve all of these different kind of problems… Instead, you’re seeing specializations of different kind of ledgers, different kinds of blockchains.”