At the Financial Sector Conference on April 24 which was held in Saudi Arabia, Saudi British Bank (SABB) has announced to join Ripple’s Instant Cross-Border Transfer Service, a payment infrastructure based on the Ripple blockchain network that utilizes Ripple’s XRP for payment. SABB joined Ripple back in January 2018, and together they have been carrying out drills on cross border payment services. The Indian Rupee (INR) is the first currency to be activated by SABB as a payment option under the cross border payment services.
In the event, the bank said that it conducted its first pilot transaction on the Ripple blockchain network later that year in December.
Majed Najm, Deputy Managing Director Corporate and Institutional Banking at SABB quoted that:
“SABB provides its customers with faster, safer and more transparent cross-border payment services by the launch of blockchain technology through Ripple. This plan aims to provide customers with a valuable service and link more countries and currencies in the near future.”
Strong strategic partnerships with multi-billion dollar companies could place Ripple in competition with Swift transfer over the long run if partner banks actively utilize its blockchain technology on day to day basis.
Saudi British Bank Joins Ripple: Win-Win situation for both?
The CEO of Ripple, Brad Garlinghouse has always optimistic about Ripple’s vision of surpassing Swift to become a dominant banking infrastructure provider. Which everyone can see as the Ripple is expanding their reach to become the global leader after joining with Saudi British bank.
For Ripple to compete with Swift could be challenging because of the existing relationship between Swift and the world’s biggest banks. Most importantly, Ripple would need to secure as more banks to raise the liquidity of XRP and improve the usability of Ripple blockchain. If there exists a limited number of banks on a network, then it will restrict the extent to which the network can be used to send and receive payments for both banks and users.
Moreover, Ripple might face huge competition as the giant financial institution like JPMorgan have started to launch their own blockchain based crypto assets. The company already has released its JPM Coin back in February 2019, for processing instantaneous payments for the bank’s clients just like Ripple.
Ripple XRP Price Outlook
Yesterday, soon after the announcement by Nasdaq to list Ripple’s XRP Liquid Index (XRPLX) to its Global Index Data, Ripple surged by 5% to $0.3094 mark, whereas Bitcoin and Ethereum were traded sideways. Ripple has seen a slight recovery from its 2019 lows, as the coin currently trades at $0.303836 according to coinmarketcap.com stats.
The coin was in bearish trend over the past 90 days after losing 2.7% over that period. XRP had broken above the SMA100 line during the beginning of April 2019 to reach a high of $0.38 but has since then broken back down. At press time, Ripple is ranked as the third largest cryptocurrency after Ethereum with a market cap of $12.76 billion.