Ripple currently has an excess of a $90 billion market valuation and has it’s coin sitting at 2.41$ at the time of this writing.
So, what’s the deal with this cryptocurrency? What’s it all about? How has it climbed the cryptocurrency charts and surpassed BCash and has even dethroned Ethereum for the time being? What keeps pushing the growth?
We’ll be looking at market conditions for the rise.
Large South Korean appetite for Ripple
Investors in South Korea have had an increasing desire for the cryptocurrency.
The cryptocurrency is seeing significant interest from both the countries of South Korea and Japan, but it is hard to tell why. One of the points that are driving interest may have been the different partnerships that the company has announced with financial institutions in those countries.
Ripple recently announced that they have partnered with financial institutions in the nation of Japan.
They have partnered with SBI Holdings, in collaboration with the credit card industry, to utilize the technology of blockchain where market participants can share transaction history and “authenticate each other.” Ripple will be working with major credit card companies such as JCB, Sumitomo Mitsui Card, Credit Saison and others who will also be participating in the consortium.
The purpose of the collaboration will be to minimize transactions that can be considered to be illegal while also aiming to reduce costs across the credit card industry.
The credit card consortium has created a payments application that is to run by Ripple’s innovative blockchain technology. This technology will allow for payments to be made via QR code or by a telephone number.
Japan & South Korea Cross-Border Payments
The company has also announced an initiative between Ripple, Japan, and South Korea which also added to the excitement in the market.
According to Ripple, the Japan Bank Consortium – a coalition of 61 banks in Japan, organized by SBI Ripple Asia — has announced the launch of a new Ripple pilot with Woori Bank and Shinhan Bank, two of South Korea’s largest banks with a collective market capitalization of more than $30 billion.
The company goes on to further state that this initiative will be the first time money moves from Japan to Korea over RippleNet. The Japanese Bank Consortium will utilize the company’s settlement technology, xCurrent, to settle transactions between participating Japanese Banks and Woori Bank or Shinhan Bank.
Ripple News spurs growth
Ripple continues to build partnerships with banks across the globe in strategic ways thus helping them to stimulate investor interest into their cryptocurrency XRP. The flurry of these latest announcements with these groups of banks have enabled it to move past Bcash and Ethereum to take the second spot in cryptocurrencies by market capitalization.
The fundamental improvement that Ripple brings to its partners is the fact they provide a cross-border payments system using distributed ledger technology to facilitate the moving of money quickly and with minimal cost between currencies and countries.
The speed, minimal cost, and innovation are what is seemingly bringing the banks to partner with Ripple. The rate of cross-border payments can be as quick as ten to fifteen seconds, while the current medium of the Swift network can take much longer, an excess of two to three days.
Can Ripple overtake Swift to become the premier system that facilitates bank to bank transactions?
Will this new kid on the block take over? Is their “interledger protocol for connecting payment networks and distributed ledgers that financial institutions can use to send and settle international payments among one another” better than that of Swift?
It seems as if Ripple is rapidly bringing on board customers across the world to be the number one player in the market.
More analysis to follow soon.