Ripple (XRP-USD), the pioneering blockchain network, has seen its native coin XRP become the fifth-largest cryptocurrency by market cap. Following the announcement of the ruling in the long-standing SEC-Ripple case, XRP resumed trading on certain crypto exchanges that had previously delisted XRP trading pairs. This has attracted renewed interest from institutional investors.
CoinShares’ recent report revealed that digital asset investment products saw inflows totaling $29 million this past week. Bitcoin had the highest amount of inflows, totaling $27 million. XRP saw inflows of $0.5 million and is on a 16-week inflows streak, representing 12% of assets under management (AuM). The XRP ledger has also witnessed an increase in the number of daily transactions.
Ripple is focused on cross-border payments and has built a suite of products to solve the problems present in the current cross-border payment network. Partnerships and collaborations with payment networks, banks, and government financial entities to integrate or explore the use of blockchain technology include MasterCard CBDC Partner Program, Real Estate Asset Tokenization in Hong Kong, and Ripple’s On-Demand Liquidity (ODL). Ripple is also one of the first enterprise blockchain networks to become ISO 20022 compliant.
Despite Ripple’s promising prospects, there are certain risks that could impede its growth. These include regulatory constraints, central banks running their own private distributed ledger network (DLT) for their CBDCs, and the uncertain conversion of partnerships.
In conclusion, Ripple’s focus on cross-border payments has created big possibilities. The long-awaited ruling in its case with the SEC has made a favorable playing field for Ripple to gain prominence in cross-border global payment. XRP price has since surged, but it has retraced to the $0.5 range. Investors should be aware of the risks associated with microcap stocks.