Ripple XRP Announces Yet Another High-Stakes Partnership
Ripple has announced another partnership with an Asian financial institution designed to boost cross-border payments, signaling continued uptake for its native XRP token.
LianLian International Joins Ripple Network
Hong Kong-based payment provider LianLian International has agreed to adopt xCurrent, Ripple’s enterprise blockchain platform, for the purpose of sending money overseas. LianLian is an active player in China’s massive cross-border e-commerce market, which is said to have eclipsed $1 trillion in 2017.
LianLian CEO Arthur Zhu said integration with the RippleNet blockchain will offer customers instant payments across 19 currencies.
Emi Yoshikawa, director of Ripple’s joint-venture group, issued the following statement:
“Cross-border payments related to China’s e-commerce market reached $1.07 trillion in 2017. There is a huge opportunity to make these payments quicker and more cost-efficient. With RippleNet, LianLian will now be able to provide merchants and consumers with on-demand payments, which they weren’t able to before. We look forward to connecting other RippleNet members to LianLian.”
Ripple has announced several partnerships in recent months, bringing blockchain technology to Japanese financial institutions, American Express, IDT Corporation and MercuryFX.
China’s E-Commerce Market Offers Huge Potential
Ripple’s involvement in China’s e-commerce boom could provide the company with new avenues for growth. Wall Street financial giant Goldman Sachs has pegged China’s e-commerce market at $1.7 trillion in 2020. That represents a compound annual growth rate of 23%.
The growth of cross-border flows related to e-commerce aligns with Beijing’s vision of a consumer-driven economy. The Chinese government is undertaking a gradual pivot away from traditional smokestack industries in favor of service sectors that can boost consumption. Although the shift has been partly responsible for China’s weakening growth in recent years, it has also supported middle-class formation in the world’s second-largest economy.
In 2015, China’s middle class overtook the United States as the largest in the world.
XRP Price Levels
Ripple’s native XRP token rose on Wednesday in unison with the broader cryptocurrency market, which was still recovering from a massive slide earlier in the week. The token was trading at 77 cents U.S. at the time of writing for a total market cap of $30 billion.
XRP peaked above $3 last month, but has since declined more than 80% from record levels. The coin emerged as 2017’s best performing crypto asset thanks to a stellar month of December.
Disclaimer: The author owns bitcoin, Ethereum, Ripple XRP and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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