PNC, the eight-largest bank in the US has begun using Ripple’s RippleNet for cross-border payments. This move has seen the bank become the first to adopt this system in the country. A report unveiled this news on August 29, noting that the PNC Treasury Management had started offering RippleNet-based services to its commercial clients.
According to the publication, this blockchain solution would see PNC become the first US-based bank to offer these payments in real-time. In so doing, it would allow its commercial clients to receive payments from overseas buyers against their invoices swiftly. PNC believes that this move would transform how its clients manage their global account receivables. On top of this, it would give them a unique chance to manage their working capital efficiently.
Ripple’s Focus on Mass Adoption
This news comes after PNC revealed plans to use RippleNet in the past year. Specifically, the bank sought to use Ripple’s liquidity product dubbed, “xCurrent”. As a result of this announcement, XRP’s price surged substantially.
However, this news has not triggered a bull rally in the XRP market. At the time of writing, the coin has plunged 6 percent over the past 24 hours to trade at $0.25.
While the coin’s performance is deplorable at the moment, the company is allegedly eyeing other parameters. Earlier this week, Ripple’s head of Global Institution, Breanne M Madigan noted that the firm is focusing on mass adoption.
Madigan new data on Twitter on August 23 saying,
New (and notable) data shows that although overall XRP trading volume was down nearly 65%, XRP/MXN volumes on Bitso went up more than 25% – during the same period of time that MoneyGram payments into Mexico using XRP went live. A real use case driving real volume. pic.twitter.com/IFR84PBlwR
— Breanne M. Madigan (@BreMadigan) August 23, 2019
Ripple’s Partnership with MoneyGram
Before this news, Ripple announced that it had acquired 10 percent of Moneygram, the second-largest remittance platform worldwide. This acquisition was part of a $50 million partnership between the two firms. Per the contract’s stipulations, Moneygram would begin using Ripple’s xRapid.
Commenting on this launch, Ripple’s CEO, Brad Garlinghouse noted that,
This is a big deal. If I were betting now, a year from now the MoneyGram deal will have a more consequential impact on the crypto markets than the Libra white paper.
According to a report published on August 28, Ripple is facing backlash from XRP holders for selling the coin to its clients. According to the holders, this dumping action has been affecting XRP’s market performance negatively. One holder came up with the suggestion of forking XRP to address the dumping problem.
Do you think PNC’s adoption of RippleNet will see XRP rise above today’s bearish market trend to register gains? Let us know in the comments below.