Ripple Patent Reveals Secret Weapon to Make XRP Slippage-Proof for Banks

Ripple has drawn fresh attention from the XRP community following revelations tied to patent US2021192501A1. The filing outlines a system created to improve digital asset transactions, especially those involving XRP, by eliminating issues caused by price volatility.

The network computing system described in the patent is focused on On-Demand Liquidity (ODL) use. It links financial institutions and exchanges while relying on a real-time messaging layer to manage transaction flow. The most notable part of the system is its design to prevent value loss during transfers.

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A key innovation is the client-side liquidity pool, known as the “slippage balance.” This pool acts as a safeguard for cross-border transactions using XRP as the bridge asset. It is positioned at both the originating and receiving ends of the transaction route.

According to Crypto Eri (@sentosumosaba), the slippage solution in the design ensures that exchange rates agreed upon before transfer remain intact. This means recipients will always receive the full value, regardless of XRP price changes during processing.

Client Pool Mechanism Could Bolster Bank Confidence in XRP Settlements

The system automatically taps into the slippage balance whenever the intermediary asset loses value during transfer. This guarantees transaction accuracy and reduces the risk that has discouraged institutional use of cryptocurrencies in cross-border settlements.

Ripple’s system combines decentralized ledger connections, institutional messaging, and exchange integrations. This mix ensures transparency and provides full traceability of asset movement, all while defending against market swings.

Banks and payment providers stand to benefit the most from this innovation. It offers a reliable and fair method to send value globally without fearing short-term volatility, which has long impacted the credibility of digital settlements.

By creating a price-protected settlement system using XRP, Ripple is addressing the core concerns of financial institutions. This approach supports the long-term goal of establishing XRP as a neutral and stable bridge currency.

Ripple’s patent introduces a strategic tool to make XRP transfers slippage-proof. With this development, banks could gain the confidence needed to adopt XRP for global transactions.

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