TL;DR Breakdown:
- Saudi British Bank has launched instant USD payments for its corporate clients using Ripple’s solution.
- This is Ripple’s 3rd corridor with SABB, after its launch of the instant INR and LKR corridors in 2019.
- The impact of this partnership on XRP prices might not be significant, as investors still wait for the SEC lawsuit hearing.
The Saudi British Bank (SABB) has launched real-time USD payment facilities for its corporate clients using Ripple’s blockchain technology. The leading Saudi bank has stated that the technology will help them achieve instant cross-border transactions, a feature that they want to roll out for all SABB customers in the future.
Ripple’s blockchain solutions have been a key part of SABB’s strategic plan since 2019, as the bank moves forward with its digital transformation vision 2030. This collaboration will make SABB the 1st bank in Middle-east to offer instant USD transactions for its corporate clients.
This expansion is Ripple’s 3rd corridor with SABB. Earlier in 2019, the bank successfully launched real-time settlements of the Indian Rupee and the Lankan Rupee via the blockchain.
What’s the future for Ripple?
The popular blockchain-based payment protocol has been under a lot of heat lately because of its ongoing legal battle with the SEC (US Security and Exchange Commission).
Back in 2018, Ripple’s Chief Marketing Strategist Cory Johson said that the company’s vision is to replace SWIFT as the primary for international payment transfers. This is why Ripple’s transaction fee was set at a much lower rate than SWIFT. With the ongoing partnerships with SABB, the company is definitely headed in that direction.
Banks like SABB who use Ripple for instant payments will be charged a standard fee of 0.0001 XRP. Historically, XRPs price has always been closer to the USD. So, banks consider this fee to be quite low compared to the current SWIFT charges, which vary based on locations and banks.
Previously, SABB and Santander have reported that the banks experienced a significant reduction in cost and enhanced customer satisfaction after implementing instant payments to certain corridors using Ripple. Such positive feedbacks from major financial institutes indicate a positive future.
Although it might be years or ages before we see Ripple replace SWIFT, it’s safe to say that SABB’s strategy to partner up will influence other banks in the region as well. Other major banks like Santander, SBI Holding and Nium have also integrated instant payment solutions through Ripple. With such partnerships, Ripple’s banking network will continue to expand in the future.
What does it mean for XRP?
Any advancement in the Ripple technology always positively impacts XRP prices in the market. However, XRP is still holding its position in the $1.15 range since the past week. It seems that the market is waiting for an end to the ongoing courtroom battle with the SEC.
Earlier last week, the SEC had requested an extension to the ruling date, pushing it to 14th January 2022. The extension request came after Judge Sarah Netburn sided with the XRP legal teams argument, hinting towards an imminent win for Ripple. However, the extension of the hearing date means that XRP holders might have to wait until early next year to see another big breakthrough in XRP prices.
There are also rumours that Coinbase might list XRP again on its exchange. The leading cryptocurrency exchange banned XRP trading on their platform in December 2020, following the SEC lawsuit. If Coinbase rumours become true, XRP prices might rally up once again. However, there has been a lot of speculations with XRP over the months, so investors might still have to wait for January 14th to truly see how the XRP saga pans out. XRP is currently trading at $1.13.
