Ripple CEO Touts XRP’s Role In Banking Sector Transformation

CEO of a payment company ripple labBrad Garlinghouse revealed the transformative role of XRP in revolutionizing the global banking sector.

Ripple CEO says XRP can be used for liquidity settlement

Jack the Ripper, community influencer and celebrity; share This information was posted to the cryptocurrency community on social media platform X (formerly Twitter) on Monday. Lipper’s X post was accompanied by a short clip of Brad Garlinghouse in a recent interview with CNBC, where the CEO highlighted the role of crypto assets in transforming the banking sector around the world.

He talked about the revolution in the banking sector. Ripple CEO, Ripple is currently “leveraging a digital asset (XRP) as a tool to solve liquidity needs among financial institutions (banks).” Furthermore, Garlinghouse pointed out that “a total of $27 trillion is currently held in various banks around the world to make payments to each other.”

As a result, Garlinghouse believes the sector will be better served by using XRP to execute these transactions between banks in real time. This is because XRP is very efficient in executing these transactions, taking less than 3 seconds to execute, compared to up to an hour using traditional methods. is.

Banks are required to maintain substantial reserves under the traditional system outlined by Garlinghouse to facilitate seamless international transactions. XRP This procedure can be simplified, reducing payment delays from days to seconds and yielding results.

Garlinghouse reminded the community that the long-term value of a digital asset is driven by the utility it covers. He then highlighted several factors to consider, including the problem the token is solving as a utility, the size of the problem, and the number of customers.

Furthermore, the Ripple CEO claimed that there is a lot of hype around the system today. But he can’t say whether that’s good for the industry.

Payment company locks 800 million XRP in escrow

According to reports, it was revealed that Ripple had 800 million XRP tokens stored internally. escrow account After releasing 1 billion XRP every month from the reserves. Whale Alert data shows that the company locked up his aforementioned XRP in three separate transactions.

Whale Alert reported that the first transaction had occurred. saw $200 million, valued at $118.94 million, is held in escrow reserves.After a few minutes, the company was locked up Another 100 million XRP (equivalent to $59.48 million) is in the account.

Meanwhile, the last transaction witnessed A whopping 500 million XRP tokens worth approximately $297.65 million are locked up. It is worth noting that the payment company usually releases 1 billion XRP on the 1st of every month.

However, this month saw a change in the routine, with Ripple releasing 500 million XRP instead of the original 1 billion XRP. The system, which started in December 2017, is expected to stabilize the XRP market and potentially improve the price of the token.

XRP trades at $0.6393 on 1D chart | Source: XRPSDT tradingview.com

Featured image from iStock, chart from Tradingview.com

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