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What Problem Does XRP Solve?

By Vijay in 21 Feb 2026 | 17:48

Vijay

Vijay

teacher

21 Feb 2026 | 17:48

XRP is closely associated with Ripple Labs, which built a payment network aimed at improving cross-border settlements.



Traditional SWIFT-based transfers:


  • Settlement time: 1–3 days
  • Multiple correspondent banks
  • High FX and transaction costs


Ripple’s On-Demand Liquidity (ODL) model:


  • Near real-time settlement (seconds)
  • Reduced pre-funded nostro accounts
  • Lower capital lock-up for banks


XRP acts as a bridge asset, enabling currency conversion without holding reserves in destination currencies.


The structural thesis depends on whether:


  • Banks and payment providers scale usage meaningfully
  • Regulatory clarity allows institutional adoption


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Vijay

Vijay

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Member since: 14 Nov 2025
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