Ripple prices have moderated since their extraordinary surge on Thursday morning, but the currency is still up more than 10% on Friday.
The Ripple to USD exchange rate appreciated from $0.210449 to $0.232294, an increase of 10.38%.
It all happened so quickly. I started writing my daily Ripple news update, and halfway through, Ripple announced that American Express Company(NYSE:AXP) would add to its growing pile of clients.
Investors were ecstatic to hear that American Express—a known giant of finance—will partner with Santander UK “to create a transaction channel between the U.S. and U.K.” (Source: “American Express Joins RippleNet – Giving Visibility and Speed to Global Commercial Payments,” Ripple, November 16, 2017.)
Traditionally, these FX transactions take days to settle. The procedure is long and often costly, making it an ideal target for disruption. Ripple is taking that opportunity and running with it.
At first, it will add AMEX’s FX corridor to “RippleNet,” a blockchain settlement service that cuts wait times from days to seconds. In the blink of an eye (or maybe a lazy eye), AMEX customers will see funds move across the Atlantic safely and securely.
Because there is no trade-off between speed and security on RippleNet. It is a private service, unlike most blockchains. This means that there are far fewer vulnerabilities with Ripple, which is perhaps why so many financial institutions find it palatable.
It combines the cutting-edge veneer of blockchain with the old-world charm of private banking relationships.
I should add that AMEX is not “experimenting” or “testing” RippleNet. This is a bona fide deal that could ultimately result in XRP prices reaching $1.00 (on its way to $2.00). However, it might take a while for XRP to get there, since it won’t be involved in transactions right now.
It’s at this point in the explanation that I usually have to remind readers that Ripple is a company; XRP is a token.
There is a symbiotic relationship between the two, but the distinction is important. For example, AMEX signed on to use Ripple’s blockchain service, but they aren’t launching straight into XRP.
“The technology we have developed, it separated a connection from the cryptocurrency or the token,” said a spokesman freon American Express. “So what that means is that a bank or non-bank like AMEX can use Ripple to connect and just exchange value from one fiat currency to another directly, without the need for any intermediate blockchain currency.”
However, the same analyst added that “The XRP currency will come into play later on in the evolutionary dynamics and the other players.” (Source: “American Express, Santander team up with Ripple for cross-border payments via blockchain,” CNBC, November 16, 2017.)
Put another way, there are a lot more gains on the horizon.
Daily Ripple (XRP) Chart
Based on this incredible partnership and the dozens that will eventually follow, it seems likely that Ripple prices will surge in 2018. In fact, we could see XRP move towards our $2.00 Ripple price prediction much sooner than expected.
Source: profitconfidential (Gaurav S. Iyer)