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Enterprise Blockchain May Finally Be Ready for Its Breakout


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Look, what Hodor was writing in his blog concerning the topic of XRP volatility and adoption of xRapid.



My Favorite Part

To read my favorite part of the XRP markets report, you’ll need to scroll all the way to the end, where Miguel included a small section entitled “Institutional Hedging and Custody.”  It’s small enough to include here:

“While customers can use XRP for on-demand liquidity through xRapid, we want to build the necessary markets infrastructure for eventual direct usage of XRP by financial institutions. In Q1, we’ll begin work towards the launch of institutional hedging instruments and custody solutions. Both of these market components are important to institutional adoption and thus are important components of our 2018 roadmap.”

Why is this so important and game-changing?  Because Ripple has solved almost every potential problem with xRapid implementation in the eyes of onlookers, save for one point that continues to generate skepticism; management of volatility.  While the current implementation of xRapid avoids the impact of volatility for institutions that choose not to hold it,28 one of the core use cases for XRP is to replace Nostro-Vostro account holdings.

While many organizations are willing to purchase XRP even without these safeguards, banks and other financial institutions will need volatility-management tools in place to support widespread adoption of XRP.

This last section replaces the previous brief mention of “lending XRP” included in the Quarter 3 XRP Markets report, and is evidence of a much more well-defined strategy by Ripple to address the volatility concern by banks and financial institutions.


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