OCC’s Embrace of Digital Assets and Banks Opportunity to Integrate

This article was first published on Insights – Ripple

The Office of the Comptroller of Currency’s (OCC) letter from July 2020 gives the green light to financial institutions to confidently develop their capabilities for handling digital assets and their associated applications. Treading carefully when implementing progressive technologies, banks require methods with a track record of legal and regulatory compliance, as well as trust in the security and availability of the technologies.

This step forward made by an official U.S. regulatory entity is directly translating to an increased appetite in digital currencies and their applications.

While this nudge is directing the industry’s sentiment in the right direction, we must also consider that banks were not prohibited from providing custody services for any particular type of asset. This includes electronic assets, with the condition that certain compliance and legal aspects were satisfied. As such, we can safely look towards existing use cases to see the benefits of leveraging blockchain-based technology. For example, the XRP Ledger has been continuously operating since 2012, enabling business and top financial institutions to deliver digital asset and blockchain solutions.

The XRP Ledger (XRPL) is an open-source, permissionless and decentralized blockchain technology that can settle transactions in 3-5 seconds. It has an associated digital asset, XRP, which is designed to facilitate fast and secure payments. The XRPL can be leveraged by everyone, including banks and financial institutions,  to build and integrate new digital asset capabilities. A wealth of documentation, examples and more is available on xrpl.org for anyone looking to integrate, or simply seeking to learn more about the XRP Ledger.

Using XRP as a digital currency on the XRP Ledger offers numerous advantages over traditional ways of moving money around the world. This is because using XRP, value can be transferred almost instantly and without the need of a central intermediary—making it a convenient ...

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