Europe’s payment landscape could be on the verge of a major shift. A recent proof-of-concept demonstrates real-time euro settlements via blockchain. The system uses the Interledger Protocol (ILP) and the XRP Ledger (XRPL), linking regulated banking rails to digital-asset liquidity.
The demonstration was highlighted by X user ProfessoRipplEffect, providing a step-by-step walkthrough of the process.
Bridging SEPA and Blockchain
The proof-of-concept shows euros moving through ILP and settling on the XRPL. It enables PSPs to connect bank deposits to blockchain liquidity. SEPA, the Single Euro Payments Area, covers 36 jurisdictions. This includes 27 EU countries plus the UK, Norway, Switzerland, and several microstates.
As of June 2025, the SEPA credit transfer scheme (SCT) had 3,550 participating institutions. Of these, 2,765 were also part of the SCT Inst for instant payments. The demonstration shows a PSP connecting these banks to XRPL settlement without altering SEPA itself.
🔥Proof of Concept in Real Time — SEPA Off-Ramp Using Interledger and the XRPL, Giving XRP Exposure to Over 5,000 European Banks🔥
All documented below with video walkthrough📝
November 6th, 2025 🔥🔥🔥
🌹This demonstration shows a SEPA off-ramp in real time, with euros moving… pic.twitter.com/7cX5owCYxv
— ProfessoRipplEffect (@ProfRipplEffect) November 12, 2025
Why This Matters for XRP
If PSPs use XRPL as a settlement layer, XRP gains relevance as a digital-asset liquidity rail. Banks indirectly access XRP liquidity through PSPs without adopting XRPL themselves.
This approach aligns blockchain settlement with ISO 20022 messaging used across Europe’s banking network. It also creates a bridge between fiat and digital assets, showing XRP’s practical role in real-world finance.
Practical Considerations
SEPA processes tens of billions of transactions annually. For example, 42.6 billion SCT and 21.6 billion SDD transactions occurred in 2022. Any XRPL overlay must handle high-volume payments while complying with regulatory requirements.
Banks may adopt slowly due to operational, regulatory, and accounting considerations. Exposure to XRP remains indirect: banks interact with PSPs, which handle XRPL settlement.
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Implications for the Ecosystem
This proof-of-concept signals that blockchain can integrate into regulated payment systems without replacing them. It demonstrates how digital assets like XRP can supplement traditional banking.
The POC could become a blueprint for connecting fiat rails to blockchain settlement globally. XRP’s role expands beyond cross-border payments to potentially being a settlement layer within Europe’s regulated banking framework.
In conclusion, the demonstration shared by ProfessoRipplEffect is more than technical—it is a tangible step toward regulated adoption. Euros flowed via ILP into XRPL, showing indirect exposure for thousands of European banks.
This POC highlights XRP’s potential as a bridge between regulated banking and blockchain settlement. It sets a foundation for future PSP-driven adoption across SEPA countries.
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 advised to conduct thorough 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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