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Ripple and Banks: XRP Ledger’s Case for Stablecoin Creation

Ripple and Banks XRP Ledger's Case for Stablecoin Creation
  • Banks adopt stablecoins through the XRP ledger
  • Stablecoins can be issued using Issued Currencies
  • Financial institutes must establish their node to join the blockchain
  • Banks can finally provide faster transactions at low costs

Ripple is stepping up, with its XRPL program as an answer to US banks integrating with blockchain technology. Unfazed by the SEC’s lawsuit against them, Ripple has also started hiring for various positions in its US branch.

Furthermore, many local XRP holders have appealed to the White House to grant XRP its “currency” status. The company is now preparing to kick it up a notch by offering to host banks as nodes in its blockchain.

Fortunately, the US decided to present a more friendly and accepting view of decentralized technology. Federal bodies can now legally provide seamless blockchain services.

In this article, let’s see what exactly Ripple’s XRP Ledger (XRPL) has to offer.

A Common Platform

The RippleNet blockchain uses an extensive program called XRPL. This protocol, since its inception, has the sole purpose of replacing the current global transfer payment systems.

To clarify, it seeks to offer a much faster cross-border transfer service, at much lower costs. As a result, the SWIFT system for global transfers may soon become obsolete.

Banks hoping to join the blockchain must begin initiating their independent node verification networks (INVN). Once that’s set, they will adopt stablecoins to process all their payments.

The Gift of Issued Currencies

XLPR comes with a unique option of issuing stablecoins through the use of fungible tokens called Issued Currencies. The presence of this alone makes XRPL an ideal option for the move.

All users can enjoy a myriad of management options. Here, they can easily create, issue, and manage their assets.

How to Join XRPL

Using Issued Currencies, banks can send stablecoins over the blockchain in an easy, secure, and stable process. To start issuing stablecoins, just follow the steps below.

  1. Connect your bank to the XRP ledger by creating an INVN.
  2. Enable account management by creating a wallet and linking it with XRPL.
  3. Set stablecoin configuration to bank standards.
  4. Begin issuing and transferring assets

A New Age of Global Payments

Adopting the blockchain universally is certainly quite a revolutionary choice. If all banks make this shift, we will see the perks of a public blockchain network in full throttle. Of all the positive changes we will bask in, let’s zero in on the big ones.

Firstly, XRPL exists as an integrated decentralized exchange (DEX). Hence, banks will enjoy the speedy exchange of digital assets. Meaning, users can hold and receive funds at the drop of a hat.

Secondly, stablecoins are pegged to live assets such as fiat money or gold. And so, users can use stablecoins to settle any matter of payments without fear of high volatility.

Moreover, using a DEX means erasing the presence of third parties. Subsequently, users will enjoy low transfer fees, even for complex matters like foreign exchanges.

With all these perks, it is no surprise that more and more banks are considering this shift to the blockchain. Therefore, it is highly imperative that all consumers understand what it entails.

An eager wordsmith who conveys her thoughts and fascinations through words and storytelling. Besides lurking on new and emerging technology forums, she’s always updated when it comes to blockchain.