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In contrast with the runaway success of stablecoins, Bank of America (BoA) remains committed to incorporating Ripple's XRP-fueled solutions for cross-border payments, which reflects institutional faith in the digital currency's singular value proposition.
This is in line with recent commentary from the Director of the Digital Asset Group (DAG), who contends that the liquidity and regulatory certainty available in XRP make it an indispensable vehicle for institutional settlementādespite the prominence of stablecoins for retail transactions.
Bank of America's connection with Ripple dates back to 2020, when it collaborated with RippleNetāa cross-border payments network leveraging XRP for on-demand liquidity (ODL).
Unlike SWIFT transfers, which can take days and are expensive, BoA settles cross-border payments in seconds with ODL using XRP as a bridge currency.
It has proven very useful for BoA's corporate clients operating in sectors like manufacturing and logistics, where supply-chain payments require real-time settlement and openness.
āXRPās speed and cost efficiency are unmatched for high-value cross-border flows. Stablecoins excel in consumer payments, but institutions need the liquidity and compliance framework XRP provides.ā
ā DAG Director
The DAG Director's report highlights a fundamental split in crypto adoption:
XRP's regulatory edge is no less material. While stablecoins are coming under greater scrutiny (e.g., MiCA's 100% reserve requirements), XRP's non-security status in key jurisdictions like the U.K. and Japan gives banks like BoA operational certainty.
Bank of America's application of Ripple's ODL addresses two high-impact use cases:
The DAG Director highlights that the strength of XRP lies in its niche utility, not head-on competition with stablecoins:
This three-way synergy makes XRP a must-have for institutionsāeven as stablecoins gain traction in consumer markets.
While Ripple grows ODL corridors to 40+ countries and central banks considering XRP for CBDC interconnectivity, BoA's risk appears prescient. The DAG Director further contributes that behemoths like BBVA and Santander are growing adoption of ODL, and Ripple's new stablecoin (RLUSD) will supplement,ānot replaceāXRP's settling role.
Bank of America's continued deployment of XRP and the DAG Director's breakdown indicate a significant point: As the crypto universe continues to develop, XRP and stablecoins serve different purposes.
For institutions that need velocity, compliance, and scalability, XRP is still the underpinning of global value transferāillustrating the degree to which its use extends beyond speculation in markets.
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