Binance CEO Changpeng Zhao hinted that the exchange plans to work with Ripple and use its XRP solution - xRapid. This is certainly important because Finance is the largest exchange in the world in terms of adjusted volumes, moving billions of trading volumes daily. This alliance is mutually beneficial for both parties. This is because Binance seeks to improve its market share and presence. On the other hand, xRapid is a fast transaction catalyst suitable for institutional use. The fact that Binance now has OTC trading makes it even better.
What xRapid does
To begin with, xRapid is a solution that uses XRP for liquidity in key markets. This means that banks using XRP as an intermediate currency can make faster payments and lower transaction costs. Meanwhile, Ripple is a fast transaction platform that can significantly transform cross-border transactions. Therefore, this decision is an extension of this vision.The Ripple website describes xRapid as follows:
The Ripple website describes xRapid as follows:
Accordingly, this solution will provide payment providers and such financial institutions with low liquidity costs. This is more so in emerging markets where payment providers need pre-funded local currency accounts worldwide. Thus, xRapid reduces capital requirements for liquidity.
Binance - xRapid Link
Binance did not provide exact details of this partnership, and the CEO only considered the position that the exchange intends to use xRapid. Zhao said:
Ripple will certainly add to its list of exchange partners, Bittrex and Bitstamp are already on the list. This means that xRapid can extend cheaper on-demand payments to more organizations. In particular, Ripple is committed to regulatory compliance, which means that its international partners can transfer funds without the need to have reserves.
So far, the only problem is the uncertainty around XRP and whether it is security or utility. If the latter is true, then it is only a matter of time when payment systems, such as Ramessa Online, accept xRapid as an enhancement to XRP. However, Binance will require unmistakable options, since the exchange at the moment only crypto-crypto. This is the change that will be made through Binance Jersey.
Michael Arrington takes on xRapid
There are few people more optimistic about this development than Michael Arrington. He is a partner at Arrington Capital and former chief editor of Tech Crunch. The serial entrepreneur has created one of the largest crypto-hedge funds nominated in XRP. Despite the fact that Ripple does not officially participate in the fund, this is a development that they definitely approve of.
Arrington promotes XRP as a way to effectively reduce tribalism in crypto space. This is due to the fact that the cryptocurrency should not be limited to communities of coins. Moreover, extreme distrust of centralized institutions is caused by supporters of XRP, such as Arrington. This is because for them, crypto is primarily a technology that developers can use to improve services in all sectors. XRP, in fact, does more to bring cryptocurrency closer to people than most other cryptocurrencies.
Binance has been settled @binance order book increasing overall liquidity. We've begun using it and it's fantastic. Few people seem to know about it.
- Michael Arrington (@arrington) June 4, 2019
Thus, Arrington reacted with excitement to the news of the partnership Binance-xRapid.This will improve the XRP state and allow more people interested in cryptocurrency to experience a useful solution.