What to Know:
- Ripple’s strategic acquisitions are positioning XRP for significant institutional settlement roles.
- Market focus should shift from smaller partnerships to Ripple’s broader control over global payment flows.
- Industry leaders highlight Ripple’s focus on trading, asset management, and expanding XRP’s DeFi capabilities.
XRP is facing scrutiny as Western Union opts for Solana, but Ripple supporter Dom Kwok argues the focus is too narrow. He believes the market overlooks Ripple’s strategic moves to dominate global payment flows. The key is to consider Ripple’s growing exposure to trillions in global payments and liquidity, not just smaller partnerships.
Kwok emphasizes Ripple’s recent acquisitions, including Hidden Road, GTreasury, and Rail, which collectively handle trillions in annual payment flows. These acquisitions, unlike partnerships, give Ripple long-term control over payment infrastructures. This control enables Ripple to steer settlement activity toward the XRP Ledger over time.
âDonât lose sight of the forest for the trees,â he remarked, as Ripple assembles the machinery to push XRP into the heart of trillion-dollar institutional settlements.
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The core of Kwok’s argument is that XRP sits at the center of Ripple’s strategy. By controlling platforms processing trillions of dollars, Ripple can incentivize migration of settlement activity to the XRP Ledger. This positions XRP as a critical component in institutional settlements.
Critics question XRP’s relevance, citing Western Union’s decision to launch its stablecoin on Solana. Market commentators like Scott Melker have questioned XRP’s role in the current payments ecosystem. However, Kwok suggests the focus should be on the trillions Ripple aims to manage, not just the billion-dollar flows.
Other industry leaders share this perspective, with Flare CEO Hugo Philion dismissing concerns over the Western Union-Solana deal. He highlights Ripple’s focus on trading and asset management, exemplified by the GTreasury and Hidden Road acquisitions. Furthermore, Flare aims to enhance XRP’s DeFi and cross-chain functionalities.
In conclusion, while partnerships like Western Union’s draw attention, Ripple’s strategic acquisitions signal a larger ambition. The focus on controlling trillions in global payment flows suggests a bullish outlook for XRP’s role in institutional settlements, with potential benefits as the digital asset landscape evolves amidst regulatory developments and the ongoing discussions around Bitcoin ETFs and meme coins like Shiba Inu (SHIB).
Source: Original article
