Financial Giant SBI to Test XRP in $6.6 Trillion Foreign Exchange Market

Japanese financial giant SBI Holdings is preparing to test the use of XRP in the foreign exchange (FX) market.

The pilot will utilize the cryptocurrency to execute cross-border currency swaps, according to the financial outlet Nikkei.

The test is designed to determine whether the speed of XRP can be used as a bridge asset to lower the risk of price fluctuations that can occur as one currency is traded for another, as well as determine potential savings on fees associated with the transfer.

To perform the trial, SBI is reportedly teaming up with the cryptocurrency startup FXcoin Ltd.

According to the Bank for International Settlements, trading in the global FX markets reached $6.6 trillion per day in April of 2019. Foreign exchange swap volumes are estimated to account for approximately half of the FX market.