The July 2020 letter of the Office of the Comptroller of Currency (OCC) gives financial institutions the green light to securely develop their skills in handling digital assets and related applications. When implementing advanced technology, banks are cautious and need methods with a track record of complying with legal and regulatory requirements and having confidence in the security and availability of the technology.
This advance, made by an official US regulator, leads directly to an increased appetite for digital currencies and their applications.
While this push is going to steer sentiment in the industry in the right direction, we must also take into account that banks were not prohibited from providing custody services for any particular type of asset. This includes electronic assets, provided that certain compliance and legal aspects are met. Therefore, we can safely look at existing use cases to see the benefits of using blockchain-based technology. For example, the XRP ledger has been in continuous operation since 2012 and enables companies and top financial institutions to provide solutions for digital assets and blockchain.
The XRP Ledger (XRPL) is an open source technology without authorization and without decentralization that can process transactions in 3-5 seconds. It has an associated digital asset, XRP, which enables fast and secure payments. The XRPL can be used by everyone, including banks and financial institutions, to build and integrate new functions for digital assets. At xrpl.org you will find a wealth of documentation, examples and more for anyone who wants to integrate or just want to learn more about the XRP Ledger.
Using XRP as a digital currency in the XRP ledger offers numerous advantages over traditional ways of moving money around the world. This is because with XRP, value can be transferred almost instantly and without the need for a central intermediary – making it a convenient tool for quickly and efficiently bridging different currencies. It is freely exchanged in the open market and used in the real world to enable cross-border payments and micro-transactions.
Compared to other blockchains, the XRP ledger was created taking sustainability and scalability into account. A first-class consensus algorithm was used instead of a resource-intensive proof-of-work mechanism. The XRP ledger can be adopted scaled without bottlenecks or bottlenecks relying on excessive computing power or energy consumption.
A built-in decentralized exchange allows for quick and easy conversion to and from virtually any asset, using XRP to provide additional liquidity through “automatic bridging” between assets.
In addition, the XRP Ledger offers numerous advanced functions such as escrow and payment channels as well as a large number of basic elements with which interesting applications such as e
- “Deposit slip” like accounts
- Advanced custody solutions for more security
- Micro-Payments for Providers: Pay as you go, settle once
If you are interested in working on or building on the XRP ledger, please visit xrpl.org for access to a variety of technical resources. If you are interested in building next generation cross-border payments infrastructure and working on new financial technologies, please join us.