FXCoin and Sumitomo Tests XRP for Overseas Forward Transactions

The remittance platform based on the XRP made for international payments developed by FXCoin Ltd. and SBI Holdings recently reported that they’re continuing to make significant progress. As part of a recent demonstration they performed, the company conducted an XRP based forward transaction to Sumitomo Corporation to send a payment to Singapore on February 25, 2021. 

Last year, a demonstration experiment was also done on November 27, which involved a forward transaction with a group company located in Japan. The transaction executed recently involved Sumitomo sending XRP towards Singapore on a trial basis. At the same time. Sumitomo purchased XRP from FXCoin at a specified date by entering a forward-dated transaction with FXCoin meant to hedge the price movement of the XRP.

Caption: FXCoin tested the XRP based forward transaction for overseas transfers

Caption: FXCoin tested the XRP based forward transaction for overseas transfers

FXCoin reports that the experiment was meant to test and demonstrate FXCoin’s hedging mechanism despite the highly volatile cryptocurrency it uses. The company says that the forward-dated transaction it provides will work as a hedge for the price’s fluctuation risks associated with the XRP. 

Last November, the first experiment demonstrated the usefulness and great potential of crypto-assets for forward-dated transactions in Japan. On the other hand, the most recent test demonstrated the possibility of completing transactions related to settlements between foreign and domestic companies and institutions. 

Also, FXCoin expects these experiments to show its ability to conduct forward-dated transactions using crypto-assets, particularly the XRP, for commercial trades with companies operating overseas. These experiments are expected to reduce settlement costs, diversify settlement methods, and improve settlement speeds of these companies’ activities as they expand globally. 

This project was first unveiled in July last year, with FXCoin leading the way after receiving a non-disclosed investment from SBI Holdings, one of the biggest supporter of the XRP in Asia.

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Jamie West

Jamie is an XRP veteran & keeps his finger on the pulse when it comes to all things crypto.

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