With an intent to generate liquidity for XRP in South Africa, the Cape Town-based fintech company, Xago, has revealed the launch of a custom-built exchange and “Ripple gateway” in the country. The exchange exclusively enables trading, sending and receiving of XRP, while employing RippleNet to do the same.
According to Xago’s official press release, the company’s latest move is attributed to RippleNet’s quick settlement between wallets, which minimizes exposure to volatility. Crypto-fanatics and businesses would be able to trade and utilize the Ripple Ledger, along with XRP, as the exchange would serve as a market-making platform.
Once Xago acquires adequate liquidity, the exchange would go on to launch a payment switch. The switch would act as a connection to retailers through their existing hardware and software systems, eliminating the need for card networks for retailers, while RippleNet and XRP act as a medium for cross-border payments. CEO of Xago, Jurgen Kuhnel, has claimed that he believes that Ripple has taken Bitcoin’s role in eliminating double spending to another level.
Additionally, the platform claims to offer low transaction fees and would operate on a mobile number based identity system. The exchange’s Chairman and investor, Mark Chirnside, elaborated on the significance of the same and said,
“This is no small step on the journey of Xago.io. With this launch and with the welcomed constructive approach we take with regulatory compliance and best practice, this platform holds the promise to reduce cost and friction, at a very interesting time in the payments arena.”
CEO Kuhnel further suggested that the platform would continue to explore solutions that would be beneficial to consumers in low to middle-income countries.