- Wellgistics Health will use XRP to streamline healthcare payments, aiming for faster, cheaper and more transparent transactions.
- They are one of the first publicly traded healthcare companies to adopt XRP for payments and treasury management.
- The initiative is backed by a US$50 million credit line.
Wellgistics Health Inc. (NASDAQ: WGRX), a pharmaceutical-distribution and healthcare-infrastructure company, will integrate the distributed-ledger–based digital asset XRP into its network as both a treasury reserve and a real-time payments infrastructure.
This pioneering move will help to streamline transactions between pharmacies, prescription medication manufacturers, and medical suppliers, the company said in an announcement released on 8 May. The initiative would make Wellgistics Health one of the first publicly traded healthcare companies to use XRP in such a manner.
Brian Norton, CEO of Wellgistics Health, said that the company’s mission is to move beyond “legacy systems, bloated intermediaries and slow moving money.” He described the new blockchain-enabled system and ledger as the “next logical step in healthcare evolution” which would inject “speed, liquidity, and transparency into a system that has long since been starved of all three.”
I believe that the future winners in healthcare won’t be the companies with the biggest buildings…they’ll be those with the fastest rails, cleanest data, and most efficient platforms. We’re betting on infrastructure…not inertia.
Brian Norton, CEO, Wellgistics HealthThe company’s XRP initiative is supported by a US$50 million (AU$78 million) Equity Line of Credit which will be used to fund the further development of programmable liquidity and on-demand financial infrastructure. The aim is to eliminate banking delays, reduce costs and to increase transparency across its healthcare network.
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The Case for XRP Integration
Wellgistics Health highlights several strategic advantages of incorporating XRP into its infrastructure, including the ability to settle transactions in 3-5 seconds, as compared with the standard 1-3 days it takes with automated clearing houses or wire transfers.
This powerful settlement capability enables near real-time payments across the network. The payments will also cost less than US$0.0002 (AU$0.0003) per transfer versus the current price of US$10-$30 (AU$15-46$).
As all transactions are logged on the XRP ledger in real time, it provides high levels of transparency within the system for processes such as compliance, rebate tracking, and audits.
On a global scale, XRP will simplify vendor payouts by slashing foreign exchange and wire transfer fees to extend the company’s reach while keeping costs low.
The increased flexibility will enable the company to offer XRP-backed lines of credit to enhance the liquidity of independent pharmacies across the network.
Wellgistics Health plans to leverage XRP for real-time settlements across the network, the automatic calculation of smart rebates based on real-world data, and an immutable compliance layer supporting the Drug Supply Chain Security Act.
Mark DiSiena, CFO of Wellgistics Health, said that the company is “working to unlock capital velocity with surgical precision”.
We believe that our XRP-powered infrastructure will allow us to run leaner, faster, and with more control than any of our peers in pharma infrastructure.
Mark DiSiena, CFO, Wellgistics Health
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