"Now Exchange Without the Dollar"... XRP Connects European and Brazilian Fiat Currencies

▲ XRP, Euro, and Brazilian Real / ChatGPT-generated image

XRP is proving with data that it holds practical value beyond being a simple investment asset, serving as a key bridge currency connecting major fiat currencies such as the euro and the Brazilian real.

According to crypto-focused media outlet The Crypto Basic on February 16 (local time), recent on-chain data analysis shows that XRP is playing an intermediary role in trade and remittance transactions between the euro (EUR) and the Brazilian real (BRL). This is interpreted as evidence that XRP is supplying liquidity within Ripple’s envisioned global payment network and improving inefficiencies in the foreign exchange market.

A data analytics platform detected a sharp increase in cross-trading volume between the euro and the real using XRP as an intermediary on a specific exchange. In the past, converting one fiat currency into another required a complex process involving the U.S. dollar, but now transactions are being completed directly through XRP, dramatically reducing both time and costs. This trend is particularly evident in remittance corridors between Brazil and Europe, where real-world use cases are expanding.

This movement suggests that Ripple’s On-Demand Liquidity (ODL) solution is operating stably in the market. ODL secures instant liquidity using XRP without the need to pre-fund accounts, and the confirmed euro and real transaction data support the view that institutions are actively leveraging XRP’s efficiency when processing cross-border payments. Actual transaction flows show repeated patterns in which large amounts of funds are converted from fiat currency into XRP at specific times and then exchanged into the destination country’s fiat currency.

Market experts believe that XRP’s role as a bridge between various fiat currency pairs will have a positive impact on the asset’s long-term value formation. As transaction volume based on real payment demand rather than speculative demand increases, resistance to external market volatility strengthens. With the XRP Ledger ecosystem establishing itself as a financial hub connecting South America and Europe, the network’s utility has further improved.

Ultimately, active on-chain bridge transactions serve as a strong signal that XRP is evolving into essential infrastructure within the global financial system. Even amid ongoing uncertainty in the cryptocurrency market, the expansion of tangible adoption cases is expected to serve as an important indicator for investors. Ripple plans to further expand XRP’s role as a bridge worldwide by linking it with more fiat currencies in the future.

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