Ripple Highlights Two Paths for Bank XRP Adoption
Ripple has presented two potential methods for banks to access XRP for settlement purposes in cross-border payments, according to independent cryptocurrency researcher SMQKE. The demo outlines how banks can either maintain direct holdings of XRP or obtain it from exchanges when needed.
The demonstration highlights the on-demand liquidity pool that XRP provides, allowing banks to reduce the need to hold surplus capital across different markets. Ripple's presentation also notes that XRP's daily trading volume surpasses many lesser-traded fiat currencies, making it well-suited for facilitating payments in currency corridors with limited liquidity.
SMQKE emphasized that banks adopting XRP for cross-border payments will drive up its price, citing the potential for increased demand and supply-side pressure. The researcher noted that both sourcing methods have the potential to strengthen demand as network activity increases.