While non-banking financial institutions and payment providers are the early adopters of the new technology, banking institutions are not using it, because the regulatory framework around the usage of digital assets is not very clear for banks. On the other hand, PSPs and some other financial institutions are less governed by these obligations.
In case of xRapid, if someone is sending a payment from the US to Mexico, one goes to the crypto exchange, and exchanges the USD to XRP. Immediately after the XRP is converted back to Mexican pesos, it is delivered either to the local or to the financial institution that has an account with the crypto exchange. This means that it is actually changing the way that the current liquidity is managed.
xRapid was launched by Ripple for commercial use in October 2018. Until now, Ripple has confirmed that three payment providers are on board, including MercuryFX, Cuallix, and Catalyst Corporate Federal Credit Union.
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