US major wholesale cooperative financial institution, Catalyst Corporate Federal Credit Union recently announced that they are exploring Ripple’s recent product, xRapid. Company itself made the announcement on their official Twitter page, yesterday, on October 24.
Moreover, the company also expressed their belief in Ripple’s technology being able to measurably reduce the transaction time. Meantime they stated that Ripple technology’s opportunity to make the time of each transaction from several days to a few minutes hence is very especially important. Moreover, this is also due to the demand for global remittances is increasing drastically nowadays.
Chief Operating Officer of Catalyst Corporate FCU, Brad Ganey recently commented on the U.S. global remittance flows from the U.S. to Mexico. He went on stating that “Ripple’s average xRapid payment from the U.S. to Mexico takes less than three minutes. As such, Catalyst Corporate will target sending its first international transaction via Ripple’s network to Mexico… Blockchain transactions could offer credit unions additional opportunity, as well, considering cross-border e-commerce transactions will reach almost $1 trillion by 2020”.
Official overview on Catalyst Corporate states that the company was founded back in 1975. It serves 1400 member and client credit unions throughout the USA. The key services of the company include: payment solutions, investment options, balance sheet management assistance, and back office support.
Meanwhile, Ripple has recently been partnering with other financial institutions, who are currently adopting the product of xRapid. Hence, the new product is becoming their solution for cross-border payments.
“Ripple’s xRapid is a technology which reduces the cost of cross-border payments and increases settlement speed. xRapid uses XRP as a bridge currency to enable the settlement of value. Platform sources the liquidity for the transaction from XRP. This reduces the need for vostro and nostro accounts to be held”, states the official overview.