Just of recent, Xago, a Cape Town-based fintech company, openly announced the launch of its Ripple gateway and custom-built exchange which fully operates in South Africa. Its exchange connects to and uses RippleNet to receive, send, and trade XRP only, the native digital asset which is used by Ripple. This exchange was built by Xago to create liquidity of XRP in South Africa. In addition, it is supposed to act as the market-making platform for cryptocurrency enthusiasts alongside businesses that wish to trade and use XRP and the Ripple Ledger.
Offering a fast settlement between wallets, RippleNet is one of the best options for transferring value between exchanges, as it moves further to reduce exposure to volatility. It was in 2016, that Xago was founded by Jurgen Kuhnel (CEO), Sonya Kuhnel (COO), and Mark Chirnside (Chairman). It is also important to understand here that it was incubated out of CiTi’s Bandwidth Barn in Woodstock thanks to Ian Merrington and his team. Behold, the company strongly believes that blockchain technology, especially RippleNet, will greatly play an important role in the payments industry.
Jurgen Kuhnel, CEO of Xago, said: “By solving the double-spending problem the Bitcoin blockchain opened up digital peer-to-peer payments without the need for a trusted 3rd party through the process of mining. Ripple took this one step further and built a faster and more cost-effective decentralised ledger to compete in the high throughput and fast clearing retail and banking environments,” He said this referring to their choice to specifically focus on Ripple and XRP.
It is said that once the exchange has sufficient liquidity, Xago will launch its payment switch. This payment switch will connect to retailers through their existing hardware and software systems. Behold, Xago is coming in to replace the need for acquirers and card networks for retailers. In addition, the use of RippleNet and XRP is planned to enable cross-border payments in the future. That is, consumers will be able to pay for goods as well as transact at the point of sale using only their mobile phone and mobile number. This is an innovative approach that will greatly bypass the traditional payment rails. Note here that Xago’s mobile number-based identity system is built to connect mobile devices, retailers, and the blockchain in one seamless experience. Coming with a significantly lower transaction fees, the Xago platform creates a comfortable financial atmosphere for business transactions.
Mark Chirnside, Xago’s Chairman, said: “This is no small step on the journey of Xago.io. With this launch and with the welcomed constructive approach we take with regulatory compliance and best practice, this platform holds the promise to reduce cost and friction, at a very interesting time in the payment’s arena. Personally, I am honored to be involved as an investor and as Chairman.”