Industry leader in prepaid communication and payment services, IDT has recently seen a 13.3% stock soar after its latest announcement that the firm, in cooperation with MercuryFX, is pioneering Ripple’s (XRP-USD) xRapid – a platform that aims to bring XRP cryptocurrency to emerging markets – for on-demand liquidity solutions. The announcement came following a previous release in October that Mexican financial services firm, Cuallix, was using XRP.
IDT and MercuryFX are both publicly-traded firms, with IDT providing global long distance telecommunication services, and MercuryFX providing foreign exchange transactions at a discounted rate.
The firms’ move to pilot the integration of xRapid is a crucial addition to Ripple’s expanding clienteles, as it strives to provide liquidity in the global money system. In line with Ripple’s goal, the firms are exploring the technology as a means to cut cost in its transactions.
As MercuryFX founder and chief executive officer, Alastair Constance stated:
“It’s no secret that XRP is faster and more efficient than bitcoin or any other digital asset”. Payment providers like IDT Corporation and MercuryFX are early movers because they understand what XRP can do for their business and customer experience. xRapid allows us to drive down the cost of currency exchange and global settlement, making our customers more competitive and saving them tens of millions of dollars each year.”
With xRapid and XRP, destination currencies will no longer require pre-funded Nostro accounts or intermediaries. This will allow financial institutions to drive down cost of international settlements, as well as currency exchanges, potentially saving millions of dollars annually.
Prior to the firm’s adoption of xRapid, IDT has already been using digital assets for transaction settlements. To that end, xRapid just might accelerate the firms’ efforts even further. As senior vice president of IDT’s consumer payments business, Alfred O’Hagan exclaimed:
“We’re excited to pilot Ripple’s xRapid solution for on-demand liquidity”