FXCoin and SBI testing XRP based solution for remittances

• FXCoin with Ripple’s partner, SBI, and others will launch a product based on XRP to reduce volatility when sending remittances.
• The XRP based solution will enter a pilot phase at the end of November. If successful it will be adopted by FXCoin partners.

A new adoption of the digital asset XRP could reach Asia. Ripple’s partner, SBI, has teamed up with crypto exchange FXCoin and others to develop an XRP based solution that reduces volatility when sending remittances. Announced in April of this year, the solution is expected to be launched in a test format by the end of November.

FXCoin is a relatively new exchange. Its operations began in 2018, founded by former Deutsche Bank employees. However, only at the end of 2019 it received a license from the Japanese regulator, the Financial Services Agency, to operate as an exchange.

The solution the exchange develops with SBI will allow users to send remittances without worrying about market fluctuations, changes in exchange rates or any of the other problems associated with sending remittances. The solution will be specially focused to be a tool that can be used by companies in Japan in need to send large amounts of money abroad. Senior strategist at FXCoin, Yasuo Matsuda said:

Until now, active crypto has been used mainly for speculative purposes due to the magnitude of price movements…

To establish the exchange market and expand the use for real demand, we will proceed with the demonstration experiment of domestic remittances and remittances abroad through the XRP, and finally, global cash management, corporate finance and trade.

Will the adoption of XRP increase?

The solution developed by FXCoin, SBI, and its partners responds to an internal demand for crypto-based products. According to the local Nikkei media report, many companies in Japan have stayed away from crypto payment solutions because of the risks associated with this asset class. Volatility is the main detractor.

Apparently, FXCoin has the support of a number of companies that have committed to using the solution, if the test phase is successful. That way, there could be an increase in the adoption of XRP and a positive impact on its performance in 2021.

As reported by CNF, FXCoin announced in late July the launch of an XRP based exchange to protect its users from sudden price fluctuations. At that time, it became known that SBI Holdings made an investment in the exchange.

SBI Holdings is one of Ripple’s biggest supporters in Asia. Yoshitaka Kitao, CEO of SBI Holdings, is considered a key player in the partnership between the financial institution and the payment solutions company. Kitao is part of Ripple’s board of directors. Recently, Ripple announced that it will make a new investment in MoneyTap, the money transfer application developed in conjunction with SBI Holdings.