Ripple Expands in Turkey but XRP Holders See Little Benefit

Ripple is making significant moves in Turkey, but its expansion may not directly benefit holders of its native token, XRP. The company has signed deals with a major Turkish bank, Garanti BBVA, and three local crypto exchanges to offer custody services and promote its dollar-backed stablecoin, RLUSD. Notably, neither of these services requires users to hold XRP.

The falling value of the Turkish lira has driven many savers to seek alternatives like stablecoins to preserve their wealth. RLUSD, which is pegged to the U.S. dollar, is a natural fit for this market. In contrast, XRP's value has dropped by about 49% over the past year, making it a less attractive option for those looking to escape currency volatility.

Ripple's custody service is already being used by Garanti BBVA Kripto, the crypto division of one of Turkey's largest banks. The company also plans to operate an XRP Ledger validator at Istanbul Technical University. However, Ripple has not disclosed details about customer numbers, transaction volumes, or fees for these services, leaving the scale of its operations unclear.

While Ripple's expansion into Turkey is a positive development for the company, it may not translate into increased demand for XRP. RLUSD could potentially compete with XRP for cross-border payment functions, as it offers stability without the risk of price volatility. Until Ripple or its partners designate XRP as the primary asset for transactions in Turkey, the country's market may remain more favorable for RLUSD growth than for XRP.