Why Ripple Might Become Its Own Bank: XRP’s Role
The post Why Ripple Might Become Its Own Bank: XRP’s Role appeared on BitcoinEthereumNews.com.
Through Ripple Payments Direct, retail users can initiate a cheap and instant payment to the beneficiary through Ripple’s infrastructure, replacing the need for a bank. In cross-border payments, Ripple uses payout partners and clearing rails through RippleNet to deliver the fastest global payments. For years, Ripple has been striking partnerships with financial institutions to onboard them onto its XRP-powered payment systems. These have included money transfer institutions like MoneyGram, global banks like Spain’s Santander, and payment solutions providers like Britain’s Clear Junction. But what if Ripple eliminated all these middlemen and embarked on a path toward becoming the primary financial services provider? As one XRP ecosystem member noted on X, the company already has a blueprint for becoming its own bank, in the way of Ripple Payments Direct. ▪️Ingenious if you look at!!▪️The way I see it #Ripple will become a #Bank of it’s own. ▪️Simplyfing Cross Border Trx’s whilst XRP is at the centre of everything. #XRP is the driving force▪️Businesses have no need to purchase XRP, just use #RPD. https://t.co/l2W1LaXtAA pic.twitter.com/CHp7H1ECwg — Boncryp Digital Asset Advocate (@boncryp) August 14, 2024 According to its website, Ripple Payments Direct (RPD) allows users to connect to Ripple “as a payment provider.” It further explains: “By using Ripple Payments Direct, you have a direct financial arrangement with Ripple for cross-border fiat payment services. Ripple takes care of delivering payments to beneficiaries, managing payout partners, providing funds to payout partners, and paying charges in exchange for payment delivery to the beneficiaries. ” Additionally, RPD eliminates the need for users to buy, sell, or custody XRP, eliminating barriers to entry for crypto skeptics. How Does Ripple Payments Direct Work? Essentially, RPD has three components: the originator, Ripple, and the beneficiary, as shown below. The originator is any user who seeks to send money on…
Filed under: News - @ August 15, 2024 12:26 am