Tom, the founder of OpenFind, has drawn attention to a research paper co-authored by the Fed Chair Kevin Warshin which they highlighted XRP. Specifically, the paper discussed cross-border payments and how crypto assets such as XRP could serve as a bridge currency.
Fed Chairman’s Research Paper Highlights XRP’s Utility
In an X postTom mentioned that the new Fed chairman co-authored a paper naming XRP as a liquidity solution between stablecoins. He further mentioned that the paper clearly states that private sector infrastructure should not be ruled out in future digital money systems. The OpenFind founder noted that this is proof that private infrastructure providers like Ripple are becoming critical components of the financial system.
Tom added that Ripple is one of the very few companies that has spent decades positioning for this moment. The 2022 paper discussed the possibility of a Special Drawing Rights-based stablecoin that can be exchanged for any national currency. The paper noted that such an arrangement could resemble the cross-border payments system that Ripple operates using XRP.
Notably, the altcoin serves as the bridge currency in Ripple’s cross-border payments service, allowing customers to swap the crypto asset for their desired currency. Former Ripple CTO David Schwartz had previously commented on its role as a bridge currency, noting that it has more advantages over stablecoins since there isn’t one consensus stablecoin to settle these transactions in.
Meanwhile, it is worth noting that the new Fed chair is pro-crypto and had disclosed his crypto exposure prior to his nomination hearing. As the Fed chair, Kevin Warsh could soon have direct regulatory oversight over Ripple, considering that the crypto firm has applied for a Fed master account. The Fed is currently considering launching a skinny master account that would provide these firms with access to the central bank’s payment rails.
Ripple Stepping Into The Trillion-Dollar Market
Pundit X Finance Bull noted that Ripple is stepping into the trillion-dollar market, as Ripple Prime has been confirmed as part of DTCC’s blockchain ecosystem. He pointed out that DTCC clears $114 trillion in securities annually, and now they are about to begin 24/5 near-continuous US equities processing from Sunday through Friday.
X Finance Bull further highlighted how this is bullish for XRP, as Ripple Prime’s infrastructure has been embedded in the development of tokenized securities. He also suggested that the market has not priced in how bullish this is, stating that the altcoin is still priced as if market participants haven’t read the production schedule. The bull case is that some of this volume could flow through XRP if the DTCC clears tokenized equities on the XRP Ledger.
At the time of writing, the XRP price is trading at around $1.35, up over 3%, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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