Xago, a South African based Fintech startup, has launched an exclusive Ripple gateway and exchange. A Report available on Xago’s official website explains that the exchange connects and uses RippleNet for trading activities.
The platform will trade exclusively in XRP, the native digital asset of Ripple. According to Xago, the Ripple gateway and exchange aim to create liquidity of XRP in South Africa.
It will act as a market-making platform for Cryptocurrency enthusiasts as well as businesses that wish to utilise XRP. As a result of the fast settlement between different wallets, RippleNet has become a viable option if you want to transfer value between exchanges.
Secondly, the introduction of a Ripple gateway and exchange will help reduce exposure to the Cryptocurrency market volatility.
Why Ripple’s Blockchain?
Touching on why Xago decided to focus on Ripple and its native digital asset XRP, the CEO Jurgen Kuhnel said:
“It was due to the potential and prospects of Ripple in the retail and banking environment. The Bitcoin Blockchain was able to solve the double-spending problem, and Ripple is improving on that. Ripple created a faster and more cost-effective decentralised ledger that will favourably compete in the retail and banking market space.”
After the Xago exchange has attained sufficient liquidity, it also hopes to launch a payment switch platform. The payment switch will help to connect retailers by utilising their existing hardware and software systems.
Also related: Blockchain use cases in Africa
Xago will replace the need for card networks for retailers. Consequently, by using RippleNet and XRP, the startup can enable cross-border payment in the future.
So, you can be able to pay for your goods and services at the point of sale using only your mobile phone. The platform users, therefore, will be able to bypass the traditional payment processes that cost time and money.
The Xago mobile number based identity system is specially designed to connect all mobile devices. Its underlying technology, the Blockchain, offers retailers a single seamless experience.
Unquestionably, the reduction in transaction cost time, positions the firm to compete in the high stakes retail market environment. The move is a bold one by Xago.
Xago is a Fintech startup based in Cape Town founded by Blockchain enthusiasts in 2016. Their locus is harnessing the potential of mobile, retail networks and Blockchain to transform payment in Africa significantly.
The cost and time involved in moving money in Africa necessitate this development. Moreover, the platform allows you to trade and send XRP on Ripple’s decentralised ledger.
Besides, with the exclusive Ripple gateway and exchange platform, you can transfer funds such as fiat or Crypto asset. Further, users will be able to utilise the efficiency, speed, and security of the Ripple Network.
The utilisation of Blockchain technologies, especially by Fintech startups in Africa, will go a long way to stimulate growth. Most importantly, millions of unbanked population would be part of the global economy.