Is XRP Still Needed as a Bridge Asset in a Stablecoin World?
- Regulatory risks limit XRPL DEX use in Ripple’s enterprise payment systems.
- XRP’s volatility and role as a bridge asset depend on holder participation and liquidity.
- Multiple stablecoins sustain need for neutral bridge tokens like XRP across jurisdictions.
More than a decade after Ripple began developing its payment solutions, on-chain volume on the XRP Ledger (XRPL) remains limited, despite over 300 reported bank partnerships.
A recent online exchange has reignited questions about the platform’s usage and the challenges tied to regulations and token volatility.
Why Ripple’s payment systems remain mostly off-chain
One of the main reasons cited for the low on-chain volume is regulatory uncertainty surrounding the XRPL’s decentralized exchange (DEX). According to industry discussions, Ripple has not integrated the DEX into its enterprise payment products due to the inability to fully screen liquidity providers.
The core concern for banks is that a sanctioned or illicit actor could provide liquidity on the permissionless DEX, posing a major risk under current compliance frameworks.
The post Is XRP Still Needed as a Bridge Asset in a Stablecoin World? appeared first on Coin Edition.
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Is XRP Still Needed as a Bridge Asset in a Stablecoin World?
- Regulatory risks limit XRPL DEX use in Ripple’s enterprise payment systems.
- XRP’s volatility and role as a bridge asset depend on holder participation and liquidity.
- Multiple stablecoins sustain need for neutral bridge tokens like XRP across jurisdictions.
More than a decade after Ripple began developing its payment solutions, on-chain volume on the XRP Ledger (XRPL) remains limited, despite over 300 reported bank partnerships.
A recent online exchange has reignited questions about the platform’s usage and the challenges tied to regulations and token volatility.
Why Ripple’s payment systems remain mostly off-chain
One of the main reasons cited for the low on-chain volume is regulatory uncertainty surrounding the XRPL’s decentralized exchange (DEX). According to industry discussions, Ripple has not integrated the DEX into its enterprise payment products due to the inability to fully screen liquidity providers.
The core concern for banks is that a sanctioned or illicit actor could provide liquidity on the permissionless DEX, posing a major risk under current compliance frameworks.
The post Is XRP Still Needed as a Bridge Asset in a Stablecoin World? appeared first on Coin Edition.
Read More
Ripple CTO to Launch ‘Independent’ XRPL Hub With Enterprise-Grade Specs