XRP Ledger Penetrates Bank Payment Networks... Countdown to Targeting 1,000 App Payment Networks

▲ XRP, cryptocurrency payment / AI generated image

An analysis suggests that Ripple is enhancing its strategy to connect the XRP Ledger with multiple networks rather than confining it to a single blockchain ecosystem, thereby expanding XRP's utility for cross-border payments.

According to Bitcoinist on May 25 (local time), crypto commentator BankXRP assessed that Ripple's investment in cross-chain router Squid was not a random move but a strategic choice to enhance the XRP Ledger's utility. Squid supports the XRP Ledger as an integrated chain alongside Ethereum (ETH), Solana (SOL), Bitcoin (BTC), Stellar (XLM), and Cosmos, facilitating native asset swaps across over 1,000 apps and decentralized financial services.

Crypto commentator Xaif mentioned Ripple's participation in Squid's $6 million funding round, analyzing that Ripple is not just building its business on the XRP Ledger but is investing in infrastructure that connects all chains. He explained that Squid operates on over 100 networks, with routing transaction volume reaching $6 billion. Brad Garlinghouse, Ripple CEO, also indicated at the Consensus conference that the crypto ecosystem will continue to consist of multiple networks, signaling Ripple's intention to expand its operational scope beyond the XRP Ledger.

Ripple's expansion strategy is also evident in its stablecoin and custody services. RLUSD is issued natively not only on the XRP Ledger but also on the Ethereum network. Ripple is also collaborating with Wormhole to expand RLUSD to Ethereum Layer 2 networks such as Base, Optimism, and Unichain. Ripple's custody services also extend beyond the XRP Ledger to include Ethereum and Solana asset custody and staking services.

It has also been noted that the XRP Ledger is enhancing its privacy features to target institutional adoption. Xaif claimed that XRP Ledger developers have integrated zero-knowledge proof technology into the network to conceal transaction sizes, counterparties, and balances from the public ledger. At the same time, regulators and auditors can verify necessary information through selective disclosure, which is advantageous for regulatory compliance.

Xaif asserted that over 300 banks and financial institutions collaborating with Ripple have been waiting for privacy features before fully entering. He explained that the XRP Ledger already has a structure optimized for payments, achieving finality within 3 to 5 seconds with low fees. He also stated that XRP supports instant connections between fiat currencies without pre-funded accounts through On-Demand Liquidity (ODL), possessing payment efficiency at a level difficult for traditional international payment networks to compete with.

As of the time of writing, XRP was trading at approximately $1.34 according to CoinMarketCap, having declined in the last 24 hours. Ripple's investment in Squid, RLUSD expansion, diversification of custody services, and the XRP Ledger's privacy features have emerged as key elements of a strategy to develop XRP not merely as a payment token but as an infrastructure asset connecting multiple chains and institutional finance.

*Disclaimer: This article is for informational purposes only and we are not responsible for any investment losses based on it. The content should be interpreted solely for informational purposes.*