Ripple, the fastest growing American payment startup, appears to be working to connect a long list of global financial brands. Over 300 financial institutions across 40 countries worldwide have already launched integrations with Ripple, according to data on its website.
Ripple owns more than half of the total supply of the digital asset XRP and has long focused on connecting financial institutions to boost its crypto-based payments network, On-Demand Liquidity. The centralized network can process transactions with settlement speeds under 3 seconds.
The company announced in late 2019 that it intends to give financial institutions on the network a hub they can use to analyze data on their fiat and XRP transactions as well as connect with one another. Ripple is serving a genuine community of customers—including banks and payment companies—which work together as a community. Ripple's focus is trying to make global payments cheap, easy, and reliable; the same way social media travels both digitally and seamlessly.
Ripple is one of the only crypto startups directly working with financial institutions and banks to modernize legacy systems using blockchains and other smart contract technology, rather than replace them. Ripple (XRP) plays dual roles as a payment platform and a currency. The platform is open source, created to allow quick and cheap transactions. Unlike its crypto rival, Bitcoin, which has a fixed supply of 12 million and was never intended to be used by banks, Ripple has gained the attention of major global banks—like Standard Chartered and Barclays—for international transactions.
Recall a few months ago, the U.S. Consumer Financial Protection Bureau (CFPB) recognized the role of both Ripple and XRP in cross-border transfers in a clarified rule on remittance transfers for banks. The report notes that Ripple can help banks achieve greater transparency during remittance transfers, saying, "the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers." They continued, "the Bureau also believes that expanded adoption of SWIFT’s gpi product or Ripple’s suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent."