XRP’s most prominent use case is in cross-border payments. Traditional international money transfers can be costly, slow, and inefficient due to intermediaries like correspondent banks. Ripple and XRP aim to streamline this process, making it faster and more affordable.
Some key use cases include:
Remittances: XRP enables individuals to send money across borders quickly and at a lower cost compared to traditional remittance services like Western Union or SWIFT.
Liquidity Provision: Financial institutions can use XRP as a bridge currency for transactions between different fiat currencies, improving liquidity and reducing the need for pre-funded accounts.
Global Settlement: Ripple is often used by large banks and payment providers like Santander, American Express, and PNC for settlement, which allows them to complete transactions in real-time and at a much lower cost than traditional systems.
Decentralized Finance (DeFi): Although not as prominent as Ethereum, Ripple has been exploring DeFi opportunities. XRP can be used within decentralized applications (dApps) and can also serve as collateral in lending protocols or liquidity pools on various DeFi platforms
