Speaking in his first ever live stream, Binance CEO Changpeng Zhao has said that the leading cryptocurrency exchange will definitely partner with Ripple to boost its XRP-powered xRapid in the future.
It is still in the early days for this potential partnership, with this only being the first signs of a partnership and there being no signs of any details coming forward from any side. But it is hugely promising for Ripple and their payment solution, which is gaining its own traction in banking institutions.
However, even though there is nothing solid yet from the two, Binance is already helping boost liquidity for xRapid by partnering with crypto exchanges Bittrex, Bitso, Coins.ph and Bitstamp. These exchanges make it possible for financial institutions to convert their local currency to XRP and send the digital asset to another country, where it’s immediately converted back to fiat.
We’re focused on launching more features right now, so we are working with a number of other partners. With xRapid, there’s nothing going on right now, but in the future we’ll definitely want to add them as a partner Zhao said on Periscope
A boost for xRapid is a boost for XRP
While XRP is the native token from Ripple, its major product aimed at financial institutions is currently xRapid. Ripple developed xRapid to be a regulatory-compliant way for international companies to move money without having to park fiat in bank accounts around the world.
It is the product they are basing most of their partnerships with banks on, and a big boost would be if an exchange like Binance came on board from the crypto-side of things.
If this partnership was to go ahead, there would no doubt be a huge boost for XRP in terms of its price as Binance is a leading cryptocurrency exchange that has a lot of sway in the ecosystem; thus, many would see it legitimizing XRP somewhat.
XRP and Ripple have come under scrutiny from the cryptocurrency community in the past because of their more traditional and institutionalized way of doing things, often labeled as centralised.
However, Binance would allow greater input from the community and cause a demand for the token, which would further distribute it and increase the level of decentralisation.