A leading Japanese investment giant, SBI Holdings, and Crypto startup, FXcoin Ltd, have begun testing the use of Ripple’s crypto XRP in settling credits and corporate debts.
The crypto start-up is leading the experiment, which involves Japanese investment and trading giant, Sumitomo Corporation, in settling credits and debts to other Sumitomo Group companies with XRP.
Sumitomo Corporation will also “make a future transaction with [FXcoin] to hedge the price movement of XRP and sell XRP to [FXcoin] on a specific date,” according to the press release from the crypto start-up, FXcoin.
“This is expected to lead to the expansion of XRP-denominated transactions in the future, in the activities of globally expanding operating companies.”
The press release also gave more details into operational structure and strategy.
- We are confident that the demonstration experiment conducted this time will not only show the usefulness and potential of future transactions using cryptocurrency assets for the first time in Japan, but will also lead to the establishment of the Swap market for cryptocurrency assets listed by the Company.
- By expanding this Swap market, we will contribute to the expansion of transactions with crypto assets as quoted prices.
- In addition to Sumitomo Corporation, Sumitomo Corporation Global Metals Co. Ltd. and the SBI Group also participated in this demonstration experiment.
- XRP is a native crypto asset of the international payment ecosystem.
What you should know
- RippleNet is a network of institutional payment-providers that include banks and payment providers that use solutions developed by Ripple to provide a seamless experience in sending money worldwide.
- RippleNet uses a leverage of cutting-edge blockchain technology in streamlining payments services that help in reducing costs.
- It should also be added that On-Demand Liquidity (ODL), Ripple’s XRP-powered cross-border payments product, is available in the US, Mexico, Europe, the Philippines, and Australia.
- RippleNet service offerings are available in 95 currency pairs, according to the fintech’s redesigned website.