Shaking Off the “Bank Coin” Label? XRP Expands Beyond Remittances into Payments and DeFi

▲ XRP (XRP) / AI-generated image

XRP is breaking away from the perception that it is exclusively for financial institutions, rapidly expanding into real-world areas such as payments and decentralized finance, and solidifying its position as a utility coin.

According to cryptocurrency-focused media outlet BeInCrypto on February 20 (local time), XRP was traditionally highlighted as a cross-border remittance solution addressing inefficiencies in the banking system, but its scope of use has recently expanded to individual consumers and the developer ecosystem. The outlet analyzed that XRP is moving beyond being merely a speculative holding asset and is in the process of creating practical use cases.

Financial institutions remain a core pillar of the XRP ecosystem. Major financial companies such as Santander and SBI Holdings utilize XRP as a bridge currency through Ripple’s On-Demand Liquidity (ODL) solution, providing faster and cheaper international remittance services compared to SWIFT (Society for Worldwide Interbank Financial Telecommunication). This offers tangible benefits by reducing the pre-funding burden of nostro accounts that require substantial liquidity.

XRP adoption is also increasing among remittance companies and individual consumers. Service providers like Azimo are leveraging XRP to lower fees, and through partnerships with BitPay, XRP payments have become available at various online and offline merchants, including AMC Theatres. In some regions, it is even being used for mobile top-ups and utility bill payments, gradually integrating into everyday life.

The most notable change is the expansion of the ecosystem based on the XRP Ledger. Developers are utilizing the ledger’s high speed and low fees to build decentralized finance applications such as decentralized exchanges (DEXs) and lending protocols. Non-fungible token (NFT) projects are also actively being launched on the XRP Ledger, marking its evolution beyond a simple payment tool into a programmable financial platform.

Although a significant portion of holders still pursue short-term gains influenced by legal battles with the Securities and Exchange Commission (SEC) and overall market sentiment, the current trend shows that XRP is moving beyond the narrow definition of a “bank coin” and establishing itself as a versatile digital asset encompassing payments, DeFi, and NFTs.

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