It is being reported that Binance will make use of Ripple’s xRapid platform in order to gain a foothold within the global payments market.

People like Michael Arlington are of the belief that this deal will turn out to be ‘mutually beneficial’ for both of the involved parties.

As per an all-new report released yesterday, it appears as though Binance CEO — Changpeng Zhao — is looking to enter into a partnership with Ripple so as to leverage the firm’s XRP-based xRapid payments platform.

This news is proving to be of great interest to a lot of people since Binance is currently one of the largest cryptocurrency trading platforms in the world and this alliance will most likely benefit both companies in a mutual fashion.

A Closer Look At The Matter

For those of our readers who may not be aware of what xRapid is, it is essentially a payments platform that makes use of XRP to facilitate near instant cross border transactions.

Thus, by teaming up with Binance, it is being estimated that Ripple will be able to provide its clients (including large financial institutions) with the ability to incur low-cost liquidity.

With all of that being said, Binance’s executive brass has still has not revealed a lot of other specifics associated with this partnership. However, in a recent interview with CZ, the Binance CEO was quoted as saying:

“We’re focused on launching more features right now, so we are working with a number of other partners. With xRapid, there’s nothing going on right now, but in the future, we’ll definitely want to add them as a partner.”

If successful, this latest partnership will see Ripple add Binance to its list of exchange partners (with Bittrex and Bitstamp being the other players that the crypto giant has already teamed up with in the past).

Other Key Details Worth Pointing Out

As things stand, there are still doubts as to whether XRP is a security or a utility token.

People like Michael Arrington — partner at Arrington Capital and former editor-in-chief at Tech Crunch — believe that this latest partnership will be highly beneficial for both parties.

Arrington is a strong XRP proponent who believes that the premier digital asset is a highly effective means of “reducing tribalism within the world of crypto-based finance”.