The Sign of a Stabilizing Market: XRP Utility

This article was first published on Insights – Ripple

Today, financial institutions are harnessing the power of blockchain and digital asset technology and seeing tangible results. 

At the 2020 World Economic Forum, Secretary of the Treasury, Steve Mnuchin, referenced this progress. He spoke about the impact of digital assets: “There are benefits to cross-border payment systems in lowering costs for consumers and businesses. We absolutely support companies working on this.” 

Industry research suggests blockchain adoption became widespread in 2019, with growing awareness of the added value that digital assets can play when paired with blockchain—especially for key use cases like cross-border payments. Moreover, this past year, derivatives trading in digital assets recorded remarkable growth—an important step in the maturation of these technologies.

Taken together, increased utility of digital assets in cross-border payments and the introduction of derivative trading are all contributing to a more liquid and stable market for digital assets than ever before, with no sign of slowing down. 

Growing Utility Helps Drive Market Validation
Ripple’s global network, RippleNet, provides a reliable, instant and lower-cost cross-border payments experience. Customers who use RippleNet’s On-Demand Liquidity (ODL) service are able to leverage the digital asset XRP to source liquidity as an alternative to traditional pre-funding. The network’s ODL users are driving usage and utility of XRP.

For example, money transfer giant MoneyGram leverages Bitso—the leading exchange in Latin America—as their key exchange partner into Mexico, using RippleNet’s On-Demand Liquidity (ODL) service. ODL uses the digital asset XRP as a real-time liquidity bridge between sending and receiving currencies. In addition to freeing up working capital, it offers instant settlement and guarantees the most competitive FX rates available today. MoneyGram recently revealed that it’s moving more than 10% of payment transactions between the U.S. and Mexico using ODL, and the business plans to use the ...

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