Ripple has been exponentially growing in terms of adoption in financial sectors. A major U.S. bank. PNC announces a partnership with Ripple that entails using the latter’s blockchain technology for cross-border and international payments. The positive news attributed to XRP’s double-digit gain in a price reversal throughout yesterday.
The financial giant operates in nineteen states and holds control over 2400 branches. First reported by Reuters on Wednesday, PNC expressed their intention to use xCurrent for global payments, which will speed up the overseas transactions made by U.S. based customers, while subsequently reducing costs.
Over the past few years, financial firms have been leaning towards blockchain technology to ramp up their investments in distributed ledgers. This helps them streamline and monitor time-absorbing processes in a cost-efficient manner. PNC will be operating on the xCurrent platform, a distributed ledger protocol that should save costs and cut transaction times significantly.
In an interview with the publication, Asheesh Birla, senior vice president for product management at Ripple, stated that currently the adoption is through xCurrent and the company hopes that xRapid is used in future, which uses the third largest cryptocurrency by market capitalization, XRP coin for global money transfer. He said:
“Banks aren’t going to be the first adopters of xRapid.”
Furthermore, Birla notes that instead of the United States the use of XRP and xRapid for liquidity in global payments is targetted at emerging markets. Ripple proposed earlier this year, that the coin is a popular choice for digital payments and sending money abroad and the XRP currency held a possible fifty percent market share in India.
While XRP enthusiasts might be upset about the absence of the currency in relation to the PNC news, Birla assures that getting banks and company to adopt xCurrent is an eventual step up towards XRP use.
“It’s a way [for banks] to get their toe into the water” the primary goal of the company is “how do you get [banks] to use xRapid which is our liquidity product.”
Meanwhile, Partnering with xCurrent will enable PNC to serve both customers abroad and those dealing with sending and receiving money internationally better. The xCurrent protocol is supposed to work in under five minutes instead of the current method of 2-3 day in processing time, eventually saving up on transaction fee as well.
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