Grayscale Investments, a prominent crypto asset manager, has emphasized one of the key advantages of its recently relaunched XRP Trust. The company is promoting the trust as a way for accredited investors to gain direct exposure to XRP, a digital asset with significant real-world utility.
Earlier this month, Grayscale reintroduced XRP trust. Currently available only to accredited investors. Grayscale has been promoting the benefits of this product since its launch, including its potential to evolve through a four-phase growth cycle that may eventually lead to the creation of a spot-based crypto exchange-traded fund (ETF).
Role in the Financial Sector
According to Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, the XRP Trust offers investors access to a protocol that plays a crucial role in the global financial infrastructure. She highlighted that XRP’s primary use case is facilitating cross-border payments with high efficiency, enabling transactions to be completed in just a few seconds.
Sharif-Askary had originally made these remarks shortly after the launch, but Grayscale recently reiterated the statement in a public update to emphasize the importance of XRP’s utility.
Cross-Border Payments
The token has shown its capacity to streamline cross-border payments, delivering a cheaper and faster solution compared to traditional financial systems. Ripple, the San Francisco-based company behind the token, has leveraged the digital asset to power real-time transactions between countries.
One of Ripple’s flagship products, previously known as On-Demand Liquidity (ODL) and now rebranded as Ripple Payments, utilizes XRP to provide swift and cost-effective international payments. Through this solution, Ripple has successfully reduced the standard three-day settlement period in traditional banking systems to within seconds.
Ripple’s payment solution also removes the need for pre-funding accounts, offering a faster and more efficient method for cross-border transactions. Many financial institutions have adopted the asset as part of their payment systems.
For example, Malaysian payment service Tranglo integrated Ripple’s ODL into all its payment channels in 2022. By the following year, the company had processed over $1 billion in transactions using this technology, illustrating the token’s importance in global financial settlements.
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XRP Trust’s Market Performance
Through this product, Grayscale offers accredited investors a means to gain exposure to the growing adoption and significance of XRP in international payment systems.
The trust, which currently holds $733,532 in assets under management (AUM), reflects the increasing interest in blockchain technology to improve the efficiency of global financial transactions and highlights growing investor confidence in XRP’s real-world applications.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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