Opinion: Ripple’s entry into the Japanese forex market in the form of a partnership with SBI Holdings is well-documented. However, recent developments occurred when SBI’s FX Trade wing offered new trading pairs with anywhere from 30%-60% savings on fees. This represented a parallel with the savings demonstrated by using Ripple’s xRapid technology.
xRapid utilizes XRP as a bridge currency for cross-border settlement, providing on-demand liquidity without the use of nostro accounts. This results in a 40%-70% reported savings on fees, not to mention the settlement in minutes as opposed to the 2 days it usually takes in traditional forex transactions.
The key takeaways from both theories are that the trading volume was set to increase on August 1st, which is when the new Forex trading pairs go live on SBI’s FX markets. The liquidity required for XRP use in xRapid would be sourced from SBI’s Virtual Currencies exchange.
This also correlated with the ‘Synergy’ strategy mentioned in SBI Holdings’ report in June. Moreover, the trading facilitated by the SBIVC exchange would allow for the easy JPY to XRP conversion.
This was observed on Japanese and Korean Won pairs with XRP undergoing a large spike in trading volume during the evening of August 1st. This was coupled with the fact that the XRPCharts website did not provide data of the specified time.
Even if the data was not properly provided, the event had an effect on the market. The price saw a movement of close to 6% spike during the same time frame. From a low of $0.42, the price saw an almost vertical climb to $0.45 in the span of 2 hours.
XRP Price chart || Source: CoinMarketCap
Although the rise from the first hike has fallen off, the coin is still trading at the $0.44 mark, at a crucial resistance.
Any future movement is still yet to be seen, but continued use by SBI in their FX trades would drive the trading volume even higher. This is correlated with an exchange known as Bitbank that has captured 12% of the total trading volume of XRP in the XRP/JPY pair, making it the exchange with the highest XRP trading volume.
XRP – KRW 1 month volume
XRP – JPY 1 month volume
In third place is Bithumb, a Korean exchange with almost 8% of the total volume. These factors point to SBI testing out xRapid in their FX promotions.
Jan Yakira, a cryptocurrency enthusiast stated:
“A move of this scale would infuse some much needed liquidity into the xRapid and RippleNet ecosystems. For investors, higher volume means more demand, and more demand with a fairly constant supply might equate to price growth. Market movement of the coin definitely needs to be looked out for.”
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