Ripple, one of the leading blockchain technology providers, is at the center of speculation regarding the potential adoption of its flagship digital asset, XRP.
This news follows hints from Ripple CEO Brad Garlinghouse and influential crypto commentator Ben Armstrong, suggesting that banks in the U.S. could soon embrace XRP for international payments.
This news, which Armstrong shared in a recent video, carries significant weight considering the challenges Ripple has faced in recent years.
Since 2020, the company has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP. The SEC labeled XRP a security, hindering its adoption in the U.S., and hampering its surges in the 2021 bull run.
However, a landmark ruling in July 2023, where the judge declared XRP a non-security, turned things around for XRP. The digital asset surged to $0.93 as investors in the U.S. flooded the market.
This win also gave XRP highly coveted legal clarity in the U.S. As Armstrong points out, this legal victory paves the way for Ripple to achieve its vision of widespread XRP adoption. He delves into XRP’s history, highlighting past technical limitations that impeded bank adoption. While many banks utilized Ripple’s software for cross-border transactions, they weren’t required to hold XRP, limiting the token’s utility.
To solve this problem, Ripple introduced RippleNet and On-Demand Liquidity (ODL). These innovative solutions addressed the shortcomings by making XRP an integral part of the transaction process.
By holding XRP, financial institutions gain instant access to liquidity for faster and more efficient cross-border settlements. This, according to Armstrong, unlocks the “true value proposition of XRP.”
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Brian Armstrong: Big Announcement Soon
Garlinghouse recently spoke about the U.S. market opening up, thanks to XRP’s legal clarity. With the excitement for bank adoption, Armstrong believes an announcement to this effect could come as early as Monday, potentially sending the XRP community into overdrive. Although XRP has been underperforming, this news could send the cryptocurrency back up, beginning a needed resurgence.
Armstrong commended Garlinghouse’s strategic approach, suggesting that the CEO has meticulously laid the groundwork for this watershed moment.
The potential adoption of XRP by U.S. banks would be a significant milestone for Ripple and the broader blockchain market. It would validate XRP’s utility and pave the way for wider institutional adoption, potentially propelling the token into the mainstream financial landscape.
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