In this document i take an extensive look inside what are the current product offerings from Ripple and how institutions can benefit from using it. As of 2020 numerous other initiatives have also taken place in the space of cross border payments and settlements space. We will be covering those later.

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Report on Ripple for Cross border payments
Changes in global payment processing & role of blockchain firms:
For more than 40 years, the vast majority of B2B cross-border payments handled by banks have been
supported by financial messaging provider SWIFT. Fast forward to today and banks are now under
pressure to improve cross-border payments, which are often seen by customers as expensive, slow and
opaque and rightly so. This is why everyone is looking for a better system or wishing someone would
design one to use.
In 2016, SWIFT earned $31 million in profit, sending a huge amount of money through their system. Yet
this was small compared to the over >$1,000,000,000,000 in monetary assets around the globe. SWIFT is
working with more than 11,000 institutions and employs over 2600 people. Ripple is the new kid on the
block who wants to compete with SWIFT, the established giant. Given their real goal is to replace SWIFT,
a 45 year old society responsible for moving money between banks internationally, to capture this
market, Ripple will have to literally 100x. It’s not an easy task by any means. Ripple Labs controls
RippleNet (Their Product Suite) as of now and is responsible for the products growth. Ripple needs to
sign up 100x as many banks and financial institutions on xCurrent (Their flagship product) to become
atleast as big as SWIFT at sending payments internationally.
However SWIFT isn’t going to just sit around waiting for an upstart blockchain startup like Ripple to
catch up. SWIFT recently completed a proof-of-concept with 22 banks using the Hyperledger Fabric
blockchain to help them free up capital stored in their nostro accounts. They have also tested smart
contracts.
At the same time, SWIFT is also working to accelerate payments over its own network with the SWIFT
global payments innovation (GPI) initiative, which promises same-day cross-border transfers,
transparent fees, and payment tracking. It has also revealed it will allow blockchain firms to make use of
its Global Payments Innovation (GPI) platform for near real-time payments. SWIFT says 55 percent of
SWIFT cross-border payments are now being made over GPI, a payments flow worth over $40 trillion.
The most exciting part in this whole completion is the fact that some blockchain platforms are now
working with both SWIFT and Ripple to create seamless methods for cross border payments. R3’s Corda
platform, had unveiled Corda Settler payments engine late in 2018 and has promised to work on
integrating various services around it. Mid 2019 SWIFT announced a trial that would connect the GPI
Link gateway with R3’s Corda platform to monitor payment flows and support application programming
interfaces (APIs), as well as SWIFT and ISO standards.
The Corda Settler app is an open-source decentralized application (DApp) that runs on the Corda
blockchain. It is aimed to facilitate global (crypto) payments across enterprise blockchain networks with
Ripple’s XRP as its base currency. Corda Settler thereby focuses on the settlement of payments
transactions between crypto and traditional assets within enterprise blockchains.

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Ripple’s offering:
Ripple is kind of like a real-time gross settlement system (RTGS), currency exchange and remittance
network. It is well known as a tool in the enterprise space for providing solutions that can remove
banking inefficiencies, by serving as a blockchain based distributed payment protocol that facilitates
instantaneous and low-cost transactions between various banks and financial institutions.
What is RippleNet?
RippleNet is a singular, global network of banks and financial institutions that can send and receive
payments through the use of Ripple’s distributed financial technology. RippleNet is designed to produce
real-time and low-cost payments by serving as a unified decentralized global network of banks and
financial institutions. By removing the fragmentation in payment processing, they can deliver a
frictionless experience for global payments. Participants of RippleNet, by making use of the same
technology, and abiding by a standard framework of payment rules and standards, overcome the
inefficiencies that a fragmented payment system produces.

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There is a fragmentation of payment networks between transacting institutions, which results in slow
payment processing times and high fees that are passed down to users. This current global payment
system is one that cannot seemingly keep up with a growing global demand for rapid low-cost
payments.
To cater to new payment demands, RippleNet facilitates instantaneous and low-cost transactions
between various banks and financial institutions.

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How is Ripple different from other blockchains?
Ripple decided to differentiate itself from blockchains like Bitcoin is in its use of gateways, issuance and
trust lines. Here is a basic overview of these features:
 A blockchain gateway is feature to allow for transfer of non-native assets (blockchain or
otherwise) onto a particular blockchain. This includes a bank being able to lock USD, Yen, or
even another blockchain asset like BTC/LTC and be able to transact with it on the Ripple
Network.
 An issuance is a method for an individual account holder on the blockchain to ‘lock’ a particular
asset (let’s say Gold) on the blockchain ledger. Similar to a gateway, after an issuance is made to
the blockchain, you can then send it to other accounts, thus taking advantage of Ripple low fees.
 Trust lines are Ripple’s way of securing issuance transactions between individual parties. As
opposed to XRP, which can be sent to anyone, an issuance can only be sent to parties who both
agree to open a line of communication. So while I can send and receive XRP from anyone in the
world, I can only send the gold I claim to have to accounts that actually trust my word.
These three features are special, because they gave Ripple Labs the momentum to move into the
financial world in a big way. By allowing banks to create their own network of partners and allow them
to transact assets on the blockchain, they introduced a new way to cut transaction costs.
By being able to create low cost transactions on the network, FIs are able to take advantage of the
blockchain; and by using XRP to secure every transaction, Ripple gave a powerful incentive for these
institutions to use XRP.
What products does Ripple Lab offer for Enterprises?

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Network users: They only send payments.
Network Members: They process payments and source liquidity

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Details about the 3 Products offered by RippleNet:
1. xCurrent
Ripple describes xCurrent as a global real-time gross settlement (RTGS) system – the same label the
world's central banks use to describe their own settlement systems. But each nation's RTGS settles only
its own currency; Ripple's ‘global' RTGS settles multiple currencies.
xCurrent is Ripple’s flagship product. It gives banks the ability to efficiently move money across borders.
It uses RippleNet, the Ripple blockchain, but does NOT use XRP. Banks like this software because it
allows them to save money and time when sending payments, without introducing much risk or changes
to their workflow.
How exactly does xCurrent work?
Let’s get into the details of xCurrent as it’s the most used product of Ripple right now.
Participating financial institutions typically install xCurrent behind their firewall. xCurrent includes the
distributed ledger used to record transactions as well as messaging and payment validation software,
according to Ripple. xCurrent also includes a rulebook designed to ensure operational consistency and
legal clarity for Ripple cross-border payments.
Ripple cross-border payments may involve correspondent banks. Using xCurrent, the financial
institutions involved in the payment send messages to each other in real time to confirm payment
details prior to initiating the transaction, and to confirm delivery once it settles. The payer's bank
initiates the process by using Ripple's messaging to gather the required information, including a quote
for all fees charged by each bank in the chain, as well as the FX rate. This lets the payment provider
inform the customer in advance about the total cost of sending the payment, in contrast to the fee
uncertainty associated with traditional bank-initiated cross-border payments.
Ripple's software then places a hold on the funds at the banks involved, and updates each bank's ledger
to execute the payment; the company says the settlement process completes within seconds. The
company also says that because the ledgers are updated simultaneously in a Ripple cross-border
payment, settlement risk is eliminated.

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2. xRapid
xRapid helps banks improve liquidity when trading in emerging markets. It is the only Ripple product
that does use XRP. Banks like it because it helps them free up a lot of money (liquidity) they’re stuck
sitting on, but dislike it because it introduces an unknown factor - volatility of XRP.

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3. xVia
xVia is similar to xCurrent, but allows entities besides banks (such as corporations and payment
providers) to send money through banks. xVia also does NOT use XRP.
Major Banks who are now using and experimenting with Ripple:
As of April 2018, Ripple said it had signed up more than 100 financial institutions, compared with
SWIFT's more than 11,000. The financial institutions that make up the RippleNet include a diverse set of
entities, including central banks, private banks, remittance firms, brokerages and payments providers. It
is indeed very much an upgrade over the existing SWIFT messaging system. Ripple's cross-border
payments software has some major international payment providers operating in multiple countries as
well as domestic banks, so its coverage is broader than indicated by simple numerical comparison.
You can view a comprehensive list sourced independently at these websites:
http://rppl.info/
https://www.publish0x.com/xrp-community/full-list-ripple-customers-20192010-update-xmjwkg

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Technical Details:
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
The XRP Ledger is the home of XRP, a digital asset designed to bridge the many different currencies in
use worldwide. Ripple stewards the development of the XRP Ledger, and advances XRP as a key
contribution to the Internet of Value: a world in which money moves the way information does today.
 The basis of the XRP Ledger is a peer-to-peer network of always-on servers sharing
transactions, engaging in the consensus process and processing transactions. Everything else
in the XRP Ledger ecosystem is ultimately built on top of this peer-to-peer network, directly or
indirectly.
 Programming Libraries exist in higher level software, where they are imported directly into
program code, and contain premade implementations of routines to access the XRP Ledger.
 Middleware provides indirect access to XRP Ledger data. Applications in this layer frequently
have their own data storage and processing.
 Apps and Services provide user-level interaction with the XRP Ledger, or provide a basis for
even higher-level apps and services
Ripple also provides a set of developer tools to help test, explore, and validate XRP Ledger API requests
and behavior. They are listed on - https://xrpl.org/dev-tools.html
The XRP Ledger is home to a deep, layered ecosystem of software projects powering and enabling an
Internet of Value. It's impossible to list every project, tool, and business that interacts with the XRP
Ledger, so this page only lists a few categories and highlights some central projects that are documented
here on xrpl.org .

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Sources:
1. “SWIFT history,” SWIFT; https://www.swift.com/about-us/history
2. American Express: https://www.americanexpress.com/us/foreign-exchange/articles/ripple-vs-swift-gpi-cross-border-payments/
3. “About Us,” SWIFT; https://www.swift.com/about-us
4. Rethinking correspondent banking, McKinsey &
Co.; https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Rethinking%20correspondent
%20banking/Rethinking-correspondent-banking.ashx
5. “Ripple vs SWIFT: payment evo” Treasury Today; http://treasurytoday.com/2017/07/ripple-vs-swift-payment-r-evolution-ttpv
6. Rethinking correspondent banking, McKinsey &
Co.; https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Rethinking%20correspondent
%20banking/Rethinking-correspondent-banking.ashx
7. Global Payments 2016: Strong Fundamentals Despite Uncertain Times, McKinsey &
Co.; https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/A%20mixed%202015%20for%
20the%20global%20payments%20industry/Global-Payments-2016.ashx
8. Rethinking correspondent banking, McKinsey &
Co.; https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Rethinking%20correspondent
%20banking/Rethinking-correspondent-banking.ashx
9. Global Payments 2016: Strong Fundamentals Despite Uncertain Times, McKinsey &
Co.; https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/A%20mixed%202015%20for%
20the%20global%20payments%20industry/Global-Payments-2016.ashx

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10. “Ripple vs SWIFT: payments,” Treasury Today; http://treasurytoday.com/2017/07/ripple-vs-swift-payment-r-evolution-ttpv
11. “Start-up Ripple has over 100 clients as mainstream finance warms to blockchain,”
CNBC; https://www.cnbc.com/2017/10/10/ripple-has-over-100-clients-as-mainstream-finance-warms-to-blockchain.html
12. “Japan Bank Consortium Moves to Become Production-ready,” Ripple; https://ripple.com/insights/japan-bank-consortium-moves-
become-production-ready/
13. “Process Payments,” Ripple; https://ripple.com/solutions/process-payments/
14. Solution Overview, Ripple; https://ripple.com/files/ripple_solutions_guide.pdf
15. “How Ripple Works,” Ripple; https://ripple.com/solutions/process-payments/
16. xCurrent product Overview, Ripple; https://ripple.com/files/ripple_product_overview.pdf
17. “SWIFT gpi reduces cross-border payment times to minutes, even seconds,” SWIFT; https://www.swift.com/news-events/press-
releases/swift-gpi-reduces-cross-border-payment-times-to-minutes_even-seconds
18. “Ripple vs SWIFT: payment ” Treasury Today; http://treasurytoday.com/2017/07/ripple-vs-swift-payment-r-evolution-ttpv
19. Developer portal: https://xrpl.org/get-started-with-the-rippled-api.html
20. Developer use cases: https://xrpl.org/use-cases.html
21. Developer Tools: https://xrpl.org/dev-tools.html
22. SWIFT Blockchain: https://www.coindesk.com/swift-gives-blockchain-platforms-access-to-instant-gpi-payments-following-r3-trial
23. Corda Settler News: https://www.finextra.com/blogposting/17188/blockchain-corda-settler-ripple-and-swift-a-mariage-a-trois
24. Cryptopedia Article: https://www.mycryptopedia.com/ripplenet-and-ripple-xcurrent-explained/
25. Settler Article: https://medium.com/inside-r3/announcing-corda-settler-2287ca620f68
26. Partnerships and other details: http://rppl.info/
27. How Ripple works: https://intellipaat.com/blog/tutorial/blockchain-tutorial/ripple-blockchain/
28. Ripple Development: https://www.reddit.com/r/Ripple/comments/7o3tca/tutorial_for_developing_a_ripple_desktop_android/