From a Ripple to a Tidal Wave: Collaboration With PNC Leads to XRP Surge

In another major milestone for cryptocurrency adoption, United States bank PNC will begin using RippleNet to process international payments for its clients.

Ripple made the announcement on Sept. 19, stating that PNC’s Treasury Management unit will be using its xCurrent software solution to expedite cross-border transactions for the bank’s U.S. commercial clients.

According to initial reports, xCurrent will allow PNC clients to receive payments instantly, which will change the way companies approach cash flow and account management. The software allows banks to communicate instantly, to confirm payment both before and after a transaction is initiated.


As a result, the price of Ripple soared over the next few days, seeing as much as 15 percent gains in overall market capitalization.

On Friday, Sept. 21, XRP moved past Ethereum to become the second biggest cryptocurrency by market cap, at around $23 billion.

Building blocks

According to initial reports, Ripple considers the move as a necessary first step in order to get banks and financial institutions to eventually use xRapid — its liquidity product that uses Ripple’s digital token, XRP.

Ripple’s product management senior vice president, Asheesh Birla, says xCurrent is “a way to get their toe into the water.”

These sentiments follow comments from Ripple’s chief cryptographer David Schwartz, who said in June that banks were unlikely to adopt blockchain systems to process international payments in the near future.

Schwartz cited concerns around privacy and scalability as a big worry for banks. Until there is a solution that completely meets these needs, big banks are unlikely to go all-in on distributed ledger technology (DLT).

Ripple’s xCurrent protocol is essentially an immutable interledger which allows instant settlement, which is an upgrade to current payment networks. But as Schwartz pointed out, it is not a distributed ledger.

With that being said, PNC has joined a number of major financial institutions that have partnered up with Ripple in various ways.

In August, Ripple expressed interest in breaking into the Chinese market in an effort to speed up international payments.

Optimistic October

Ripple is hoping to launch a