Catalyst Corporate Federal Credit Union, a wholesale financial institution that provides a range of services to 1,400+ credit unions in the US, recently revealed its strategy for the future.
The company announced plans to join the growing number of financial institutions using Ripple’s cross-border payment solution, xRapid.
xRapid provides a low-cost liquidity solution for emerging markets. It uses Ripple’s native token XRP to help banks move money across borders. Catalyst’s implementation of xRapid will mark one of the first uses of a cryptocurrency by financial institutions in a commercial product.
Kathy Garner, CEO of Catalyst Corporate Federal Credit Union, says the startup will work with Ripple to implement the xRapid product to facilitate its global payments. The intention is to use the product to power key remittance corridor between the United States and Mexico. She notes that Ripple blockchain eliminates delays in international payments while cutting costs at the same time.
“One of Catalyst Corporate’s largest endeavors in 2018 was forging a strategic partnership with Ripple, the leading enterprise blockchain provider for payments. Our goal is to send international payments to Mexico via Ripple’s blockchain solution. With this cooperative arrangement known as ‘Currentz,’ secure cross-border money transfers can be completed within minutes.”
Brad Ganey, Catalyst COO, says Ripple has what it takes to improve the way international payments are traditionally processed. He is convinced that Ripple, which uses xRapid to carry the XRP coin to source liquidity, can solve all the problems associated with the traditional wire transfer. He said:
“The traditional international wire experience fails to meet today’s expectations from a price, speed and ease-of-use perspective. Blockchain technology and specifically Ripple’s xRapid product resolves all three of these challenges simultaneously.”
The list of Ripple’s technology adopters continue to broaden
The announcement comes a few days after a London-based financial giant, Euro Exim Bank, announced that it is using the XRP digital token for cross-border payments.
The San Francisco-based blockchain startup, meanwhile, is currently the subject of multiple remittance plans by financial institutions across six different continents. Currently, Ripple has partnered with over 200 financial institutions.