Ripple partnership is expanding its global payments system with a new partnership with Convera to speed up international transactions for businesses. Ripple and Convera are joining forces to improve the flow of payments and foreign exchange transactions with the use of blockchain technology.
As per the official details, a “stablecoin settlement sandwich” approach has been adopted, whereby transactions begin with fiat currencies, such as dollars or euros, and then use stablecoins before reverting to fiat currencies again. This allows companies to take advantage of blockchain speeds without having to use stablecoins.
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Ripple Expands Its All-in-One Payments Platform
The firm is developing a complete payments system to enable businesses to receive, store, and send payments without relying on multiple third-party companies. The system includes managed custody, virtual accounts, and liquidity tools to facilitate payments in different currencies and geographies.
Ripple is a well-established network with a presence in 60+ markets and over 75 licenses, including a New York Trust Company Charter. The network has a transaction volume that exceeds $95 billion, indicating increased adoption among financial institutions.
There are already some companies using Ripple’s infrastructure to make payment systems more efficient. These include AMINA Bank, which facilitates international payment disbursements to Brazil, and AltPayNet, CambioReal, Corpay, MassPay, and Alfred.
Stablecoin Adoption Gains Global Momentum
Stablecoins are gaining traction in the global financial system, with $33 trillion in transactions recorded last year. Regulators are focusing on reserve backing, liquidity, consumer protection, and anti-money laundering regulations to instill trust in the stablecoin system.
Major financial companies are entering the market. Visa is adding to its stablecoin settlement options, and Mastercard is taking its position further by acquiring BVNK, a stablecoin infrastructure provider.
Ripple Partnership Removes Prefunding Barriers
Convera adds to this partnership with its global footprint of over 200 countries, 140+ currencies, and about 26,000 business clients. The Ripple partnership plans to reduce the cost and time associated with traditional international transactions by joining Convera’s payment network with the network’s blockchain technology.
One major advantage is that there is no need for a business to prefund foreign accounts. The payment system is fast and settles instantly through the stablecoin layer.
Market Reaction and XRP Outlook
The Ripple partnership has caught a lot of attention from the crypto community, especially concerning XRP. At press time, XRP is trading at $1.36, with growing expectations for the firm’s expansion in the financial world.
While many predict stablecoins will first find use in cross-border payments, and then later in retail, others predict they will be used for in-store payments next.
Overall, the Ripple-Convera partnership is an example of the increasing acceptance of blockchain technology in global finance, which in turn bolsters confidence in digital currencies like XRP.
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