Ripple’s cryptocurrency has surged as much as 35 per cent this week amid optimism that it will serve as the means of exchange in a new payment service being developed by its parent company.
Ripple Labs Inc. could launch a service that will use its native currency “in the next month or so," one of its executives told CNBC on Monday. Called xRapid, the service lets financial companies such as payment providers speed up money transfers into emerging markets using XRP, the Ripple cryptocurrency.
While outperforming bigger rivals such as bitcoin and ether this week, XRP is still down about 85 per cent amid this year’s virtual currency market collapse. It was up 11 per cent to about 36 cents as of 11:05 a.m. in New York, according to prices compiled by Bloomberg.
While ripple’s main product available today, called xCurrent, doesn’t require the use of XRP, "xRapid, on the other hand, leverages this commutation system to allow institutions to settle inter-bank transactions using the XRP digital asset," Lucas Nuzzi, director of technology at Digital Asset Research, said in an email. "The use of XRP is mandatory with this product."
Ripple Labs is set to hold its Swell conference on from 1 – 2 October in San Francisco. The meeting will include speakers from Banco Santander, Payments Canada and other financial institutions and regulators, as well as former President Bill Clinton. Ripple also added PNC Financial Services Group Inc. to its network of users. Ripple now has more than 100 clients around the world and operates in 40 countries.