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Ripple (XRP) is the bank industry’s lady in red. Here’s why

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Ripple XRP is the third largest (or I’d say third most successful) cryptocurrency in the world by market capitalization. Ripple’s blockchain technology has found ways to make international transactions quicker, safer, cheaper, and more efficient so many banks and other financial institutions are adopting it to carry out their daily transactions. Ripple’s innovations are remarkable and they are quickly becoming the financial’s world cryptocurrency of choice.

The firm is based in San Francisco, California since 2012. Chris Larsen and Jed McCaleb are the founders. They created and developed the Ripple Payment Protocol and Exchange Network (which was called Opencoin at the beginning but was renamed Ripple labs in 2015.) The CEO is Mr. Brad Garlinghouse.

Ripple’s way vs the traditional way

Ripple’s way of doing business is very different, of course. That’s why it’s been so successful so far. Here are some of the main differences:

  • Ripple’s transfers allow for a rich information exchange between parties while the traditional keep them to a minimum.
  • The exchange in traditional transactions is carried out through the fixed correspondent method. It’s the way in which the exchange rate is chosen for any given transaction. Ripple uses an automated instant auction for liquidity, FX assuring and provision which ensures that the rate will always be better than traditional transfers.
  • Ripple (XRP) can convert currencies even in cases in which such conversion is not available in traditional methods.
  • Ripple’s method takes mere seconds to complete a transaction while the traditional way usually takes from three to four days.

Ripple: The banks’ new lady in red

Ripple’s focus on optimizing international trade and payments is unparalleled in the cryptocurrency world. That’s why banks and financial institutions the world over are going crazy over it. It makes them better banks, more efficient, safer, cheaper. XRP has become an alt-coin that’s become highly friendly and desirable for the financial community the world over.

Ripple’s transfers are nearly instantaneous and the fee it charges to banks and institutions is lower than any other coin available. Compare this to Bitcoin, which can need as much as ten minutes to complete a single payment operation. Ripple’s transfers are insanely cheap, they remove lifting fees, board rates, charges caused by the SWIFT system, Nostro accounts and all those charges that seem hidden to end users.

Adoption and partnerships

Ripple’s functionality has allowed it to secure partnerships with some of the world’s most important banks. Here are some of them:

  • Mitsubishi UFJ Financial Group, Inc. (MUFG). It’s the world’s fifth-largest bank with $2.6 trillion in assets. It was one of the first banks to join Ripplenet.
  • Credit Agricole is Europe’s third-largest bank, worth $1.82 trillion.
  • Banco Santander has a huge global presence. They developed the first mobile app that uses Ripple’s xCurrent technology to make global payments.
  • Mizuho Financial Group.
  • Axis Bank, from India.
  • Standard Chartered Bank, from Singapore.
  • Rak Bank, from the UAE.

More than seventy-five financial institutions all over the world have already adopted Ripple and some other thirty are experimenting with it.

Ripple is banking’s future: Here’s why

Members of the world’s financial community find it easy to trust those other members who are actually following regulations and guidelines to guarantee the service’s quality. The increasing rate at which banks everywhere are adopting Ripple shows they’re confident and committed to the new technology.

They’ve realized it is the best current alternative for faster, safer, cheaper payment settlements and transfers. This also works to the banks’ customers advantage as they usually prefer to trust banks over non-banking institutions they don’t really know anything about. This puts Ripple way ahead of the pack.

Last but not least, XRP remains cheap to this day so as demand grows for it, its potential for performance and growth can only explode. If Ripple’s XRP manages to be adopted by the world’s banks, it could very well leave Bitcoin (BTC) and Ethereum (ETH) behind.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pixabay via Pexels.com

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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