Ripple Names Its First Three Preferred ‘Gold Standard’ Crypto Exchanges

Siamak Masnavi

On Thursday (16 August 2018), Ripple gave its "gold standard" seal of approval (for making xRapid payments) to three cryptocurrency exchanges around the world (one in the U.S., one in Mexico, and the other in the Philippines).

xRapid, Ripple's solution for fast, reliable, and inexpensive cross-border payments, uses the digital asset XRP to offer on-demand liquidity, which dramatically lowers costs for making real-time payments to/in emerging markets.

In the announcement posted on its "Insights" blog a short time ago, Ripple says that for xRapid to be most successful, "there needs to be a healthy ecosystem of digital asset exchange partners around the world" that allow alow quick and efficient conversion of one fiat currency to XRP at the source end and conversion of XRP to another fiat currency at the destination end.

Today, Ripple named its first three "preferred" crypto exchanges:  

  • Bittrex (for xRapid transactions that move through US Dollars)
  • Bitso (for xRapid transactions that move through Mexican Pesos)
  • Coins.ph (for xRapid transactions that move through Philippine Pesos)

Ripple explained how an xRapid payment from U.S. to Mexico would work (using Bittrex at the U.S. side and Bitso at the Mexico side):

  • "A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex."
  • "The payment amount in XRP is settled over the XRP Ledger."
  • "Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account."

Cory Johnson, Chief Market Strategist at Ripple said:

“Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. That makes today’s announcement an important development for xRapid. We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.”

Later, Johnson explained via a tweet why for naming its initial set of preferred partners Ripple had chosen Mexico and the Philippines:

Ron Hose, CEO of South East Asia’s e-wallet and financial services company, Coins.ph, had this to say:

“We are excited to be partnering with Ripple to bring the benefits of blockchain technology to cross-border payments, making sending money home more affordable for 10M+ overseas filipino workers."

It seems that Ripple has selected these three exchanges because of their large XRP holdings, which means that they can provide higher levels of liquidity. And by endorsing such exchanges, it is able to in crease their liquidity even further.

 

Featured Image Credit: Image Courtesy of Ripple

Sub-accounts in Crypto: What They Are and How They Work

 

Julia Gerstein, a crypto trading bots enthusiast and a content writer at TradeSanta. My final goal is to help readers find what they need, understand what they find, and use what they understand appropriately.


Speaking generally, a sub-account is a segregated smaller account that is tied to a larger primary account. Sub-accounts may serve different functions depending on the objectives of their owners. The term can refer to multiple email addresses linked to one user or secondary accounts tied to a primary account with a financial institution or a bank.

For this article, we will be looking at sub-accounts as they exist in the crypto industry, and specifically on trading platforms.

Built-in Sub-Accounts

On trading platforms, the sub-accounts feature allows users to create a set of subsidiary accounts with different trading strategies, funds and end customers. On some platforms, general accounts already come with built-in sub-accounts.

For example, exchange platform Crypto Facilities provides each user with cash and margin accounts when they sign up. While deposits and withdrawals are completed with the cash account, trading an instrument requires users to make an internal transfer from a cash account to their margin account that corresponds to the instrument in question.

Each instrument has its own margin account. This grants users more control over their funds and allows them to manage risks for each instrument separately from their main balance.

Optional Sub-Accounts

Other cryptocurrency exchanges, such as Gemini and Binance, have launched sub-accounts as an optional feature for institutional investors.

As an optional feature, sub-accounts can serve to introduce additional security measures and different access levels between the main account and its subsidiaries. Binance has underlined the differences between a master account and its subsidiaries, providing the former with the exclusive ability to view all data and balances, transfer funds between accounts, and have full managerial control and access to a range of asset audit tools.

Here master accounts have sole control over the movement of assets between sub-accounts, and can grant each of them different access levels and permissions. This ensures that the main account has the power to direct and monitor the actions of all its associated accounts, while each sub-account can perform its function independently from other sub-accounts.

Not Only for Institutional Investors

While institutional investors have been able to create sub-accounts for a while, this feature is still being introduced by more and more major exchanges.

Now even individual investors can create subsidiary accounts to try and assess the performance of distinct trading strategies. For example, HitBTC recently introduced its own sub-accounts feature that is now available per user’s request.

At HitBTC, sub-accounts enable users to create separate subsidiary accounts with which they can utilize various trading styles and strategies with operational autonomy. While each sub-account is separate, all of them are still tied to a master account and contribute to the cumulative volume of all accounts connected to the master.

Because trading volume is measured cumulatively, the use of the subaccounts feature can open up additional benefits for traders such as lower commissions due to progressive fee tiers that reward users for contributing to the liquidity on the trading platform.

Therefore, users can perform a variety of different trading activities unconnected to each other, and all the activities will still weigh in the financial favor of the parties involved. Master accounts also have access to important data such as the performance of each sub-account and total trading fees of all linked accounts combined. While the feature is designed with institutional and corporate clients in mind, on HitBTC any user can create sub-accounts upon request.

The adoption of this feature by more and more trading platforms will be beneficial for both institutional and individual traders. Some users can utilize it to execute different trading strategies or try various algorithms with a clear picture of their effectiveness, others to manage their team and analyze the performance of each account securely and conveniently.

Featured image by Tyler Franta on Unsplash