Ripple’s XRP is gaining traction in the banking world and Ripple is currently one of the few blockchain companies that has a real-use product.
Multiple banks and payment providers have chosen Ripple’s technology as a next-generation solution to facilitate their cross-border payments, thereby driving costs lower and enabling them to pass on some of these savings to customers. Ripple is disrupting the traditional payments model in which banks are able to intermediate between payments and collect fees for this services.
However, a general misconception about Ripple is that all of its clients are using XRP and the company admits that the majority are using its enterprise blockchain RippleNet.
MVIS CryptoCompare XRP Index
Source: MV Index Solutions.
About the Author:
Dominik Poiger oversees ETF Portfolio Management for VanEck Europe. Prior to joining VanEck he held a Portfolio Manager position at Tungsten Capital Management GmbH being responsible for managing two UCITS funds and consultant in the Financial Services Transaction Department at PwC. He holds a Diploma in Business and Economics with specialization in Accounting and Finance, International Economics and Banking and Finance from University of Hohenheim, Germany.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.