Euro Exim Bank implements Ripple Standards xRapid and xCurrent. Any benefit for XRP holders?

As you can see from the online magazine Global Trade View, Ripple is working with Euro Exim Bank on a new way to make better use of xCurrent transactions. This will be an extension of xCurrent that goes beyond the functionality of SWIFT.

Accordingly, the possibility of implementing trade finance in xCurrent transactions is being worked on:

“[…] Apart from the payment order, what if we were to use the message to transmit trade finance directly to a counterparty? This can be a letter of credit or a performance guarantee. Technically, we are able to “transfer” the entire message to xCurrent,

explains Graham Bright, Head of Compliance and Operations at Euro Exim Bank.

System to be tested first

In order to develop this system, one first works together with a test counterparty. The current problem is that xCurrent – like SWIFT – only sends payment information. The XRP token serves as a bridge between different customers or banks. This could lead to liquidity problems – for example, because the banks have to store sufficient (foreign) currencies in their so-called nostro banks in order to guarantee the transfer at the end of the day.

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xCurrent solution goes beyond SWIFT

The planned solution therefore goes beyond SWIFT and xCurrent. Because Ripple and Euro Exim Bank want to add letters of credit or performance bonds to the transactions, they go beyond the mere transmission of payment information.

The test phase will start shortly. Together with other partners, Ripple and Euro Exim will initially define a possible transaction structure. The bank also plans to implement xRapid in the first quarter of 2019.

What is in it for XRP holders?

Not much. Euro Exim Bank is a tiny institution with almost no volume so they are far from moving XRP price or boost its volume. XRP is still just a speculative instrument with not utility.

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