A recent post by crypto commentator All Things XRP presents a comprehensive argument that XRP’s utility is moving far beyond its well-known role in cross-border payments. The commentator outlines a broad vision where XRP, along with the XRP Ledger (XRPL) and Ripple’s infrastructure, becomes an essential component in the digital transformation of global financial systems. According to this analysis, banks are preparing to leverage XRP for payments and a foundation for CBDCs, asset tokenization, digital custody, DeFi, and liquidity services. The post asserts that XRP is already integrated into significant financial systems. Over 100 financial institutions are reportedly utilizing RippleNet for cross-border payments. However, the commentary emphasizes that Ripple’s strategic direction is evolving. The original focus on remittances and international transfers is now being complemented by ambitions to embed Ripple’s technology deeper into the core operations of banking infrastructure. WILD TAKE: XRP won’t just power payments. Banks are eyeing it to run entire digital ecosystems — from CBDCs to custody to asset tokenization. This isn't just speculation. Let me show you why. pic.twitter.com/kOm9iQrQiA — All Things XRP (@XRP_investing) May 21, 2025 CBDCs and XRP as Multi-Function Infrastructure The commentator points to the partnership between Ripple and Colombia’s central bank , which tests central bank digital currencies (CBDCs) using Ripple’s platform. This initiative is described as more than a pilot. The tweet suggests XRP could serve as the transmission layer, the storage system, and the transaction coordinator for CBDCs. If adopted broadly, banks could generate revenue through the distribution, settlement, and custody of these digital currencies. Further, the commentary addresses the XRP Ledger’s capacity for real-world asset tokenization . This includes tokenizing assets such as real estate, bonds, and commodities. The post proposes that banks could use these features to mint and manage tokenized versions of physical assets. According to the author, the potential mirrors traditional asset managers like BlackRock, but with blockchain-native mechanisms that streamline trading and management. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Digital Custody, DeFi, and Institutional Growth The analysis also focuses on digital custody . As institutional involvement in cryptocurrency grows, secure storage of digital assets becomes critical. The post claims that Ripple’s infrastructure could position banks to take on this custodial role, storing XRP and other crypto assets on behalf of clients. This service could provide banks with recurring revenue through custody fees, a model aligned with how traditional finance handles securities and vault services. DeFi, though still in an early stage within the XRP ecosystem, is identified as another area for growth. With emerging smart contract capabilities on XRPL, banks may one day offer services like lending, borrowing, and yield farming directly on-chain. According to the tweet, Ripple is preparing for this possibility now, setting the groundwork for a broader rollout once regulatory conditions are clarified. Liquidity Services and the Role of Regulation Liquidity provision is another proposed use case. Banks could supply XRP liquidity for foreign exchange (FX) markets, profiting from spread differentials, lending, and market-making activities. The author emphasizes the benefits of speed and scale, suggesting that XRP-based liquidity could eliminate the need for intermediaries and allow banks to handle volume with greater efficiency. The commentary acknowledges that many of these applications are still in development and not mainstream. However, the author insists the infrastructure is already in place, and interest from financial institutions is increasing. As regulatory clarity improves, particularly in the United States following the high-profile SEC lawsuit against Ripple, banks are becoming more confident in exploring XRP for a wider range of functions. In closing, All Things XRP proposes that the financial sector’s interest in XRP is not limited to accelerating payments. Rather, banks may be preparing to use XRP and Ripple technology to construct a new layer of global financial infrastructure. The message is clear: XRP is not just a tool for transactions but potentially a foundational component of future banking systems. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Expert Shows that Banks Are Eyeing XRP to Run Entire Digital Ecosystems appeared first on Times Tabloid .
