Researcher Presents Documents to Show XRP Is for Banks

In a recent tweet, crypto researcher SMQKE responded to a post from Panos Mekras, co-founder of Anodos Finance, asserting that XRP is designed for banks.

In a brief but direct statement, SMQKE wrote, “Yes, XRP IS FOR BANKS. Documented.” Alongside this response, he shared multiple documents to support his claim regarding XRP’s role in financial institutions.

Mekras had previously stated that “XRP was designed as a P2P digital asset and the XRP Ledger as a P2P network.” His post suggested that while XRP and the XRP Ledger were initially developed for peer-to-peer use, Ripple shifted its focus toward institutional adoption. Mekras emphasized that this shift did not change the decentralized nature of the XRP Ledger but influenced how Ripple positioned its products.

Documents Highlight XRP’s Institutional Use

In response, SMQKE presented a series of documents that outlined Ripple’s business model and its integration with financial institutions.

One document stated that “Ripple’s business model centers around its digital payment protocol, XRP Ledger,” describing how financial institutions must integrate their systems with the XRP Ledger to utilize Ripple’s services.

Another document highlighted that “this integration enables them to send and receive payments seamlessly using Ripple’s native digital currency, XRP.”

A separate document examined Ripple’s cross-border payment strategy, explaining that “Ripple intends to use XRP as a ‘bridge currency’ to make transactions cheaper and faster.” It further stated that Ripple provides banks with software access to its network, allowing them to execute transactions without requiring a unified accounting system. The document also noted that Ripple’s xRapid product enabled nearly instantaneous transfers using XRP.

Ripple’s Shift Toward Financial Institutions

Another excerpt referenced Ripple’s transition toward institutional adoption, stating that the company “pivoted towards cross-border payments in 2015.” It detailed Ripple’s regulatory challenges at the time, including compliance with the US Bank Secrecy Act and securing a New York State BitLicense for “institutional sales of the cryptoasset XRP.”

The document also stated that Ripple had “pivoted towards financial institutions to partially outsource regulatory compliance: serving banks rather than individuals.”

The commentary from both parties reflects differing perspectives on XRP’s intended use case. While Mekras acknowledged that Ripple had pivoted toward banks, he maintained that XRP was created for peer-to-peer transactions. SMQKE, however, pointed to official documents highlighting XRP’s integration with financial institutions, reinforcing his claim that XRP is designed for banks.

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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