The price of Ripple posted about a double digit increase in the trading price on Thursday following the announcement of the new partnership with the credit card giant American Express to process cross-border payments.
As reported by HiTechFacts, American Express and Santander has partnered with Ripple, the infamous cryptocurrency with a stable price that is under $1. To create a blockchain payments channel between UK and US. Customers of these banks will be able to send cross-border payments with ease and lower transactions costs along with complete transparency. The platform will operate on RippleNet and the total settlement time of the payments for international payments will reduce from days to second.
The announcement of the partnership was met with a lot of optimism. The news immediately started spreading and the price of the currency rose. The price of the Ripple currency had been wandering around $0.212 in the past week. A sudden spike was seen, and the price climbed up to $0.272 with day over trading volume quadrupled. The price cooled of later in the day as the volume of transactions continued to surge. Currently the currency is trading at $0.238.
Although the official announcement stated a collaboration of Ripple and the bank there was no mention of the use of XRP the currency that Ripple’s blockchain uses. Many investors do not realize they company can use the blockchain payment network without integrating the use of the currency.
“The technology we have developed, it separated a connection from the cryptocurrency or the token, Marcus Treacher, global head of strategic accounts at Ripple, told CNBC. “So what that means is that a bank or non-bank like AMEX can use Ripple to connect and just exchange value from one fiat currency to another directly, without the need for any intermediate blockchain currency.”