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Brad Garlinghouse: FIs are already using XRP in their payment flows

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46 minutes ago, Ohbithandle said:

Thanks for your insights, @Naweed. The really interesting question at this point for me would be what has BoA  promised Ripple in return.

Bank of America is a tier 1 bank, its at the forefront of regulation and setting examples for the industry. Its great marketing and examples of real world tangible benefits. If the technology pays off Ripple will making a killing. So will Bank of America with its first mover advantage. 

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9 minutes ago, Naweed said:

Bank of America is a tier 1 bank, its at the forefront of regulation and setting examples for the industry. Its great marketing and examples of real world tangible benefits. If the technology pays off Ripple will making a killing. So will Bank of America with its first mover advantage. 

Any insight as to how likely or how far away BOA using XRP is?

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None of this makes sense, or am I missing something?  How can one bank benefit from being on Ripplenet without other banks to trade with?  I thought the whole point of Ripplenet is that it is an interbank network?

I can imagine Ripple might say OK BoA, you get the ball rolling in America and we will not sign up any other banks in America for six months.  I cannot imagine Ripple sacrificing their whole strategy to get one bank on board.  Ripple have told us they are more interested in developing the Middle East markets and Far East markets than trying to lure the big Western banks on board.

Edited by Julian_Williams

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20 minutes ago, djdhrubs said:

Any insight as to how likely or how far away BOA using XRP is?

Seeing how crypto is still unregulated you have your answer. Until that's been cleared up you won't see any large institution using it. That's my thoughts and backed up by various large banks. 

19 minutes ago, Julian_Williams said:

None of this makes sense, or am I missing something?  How can one bank benefit from being on Ripplenet without other banks to trade with?  I thought the whole point of Ripplenet is that it is an interbank network?

I can imagine Ripple might say OK BoA, you get the ball rolling in America and we will not sign up any other banks in America for six months.  I cannot imagine Ripple sacrificing their whole strategy to get one bank on board.  Ripple have told us they are more interested in developing the Middle East markets and Far East markets than trying to lure the big Western banks on board.

The first step is always the hardest. Yes, CEEMA markets are often where there is limited liquidity. Hence, Ripple can make massive breakthroughs. However, its those large Western Bank that drive a lot of financing deals where you need liquidity, settlement etc. 

Like I mentioned, not all banks are the same tier or treated equally. 

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1 hour ago, Naweed said:

Seeing how crypto is still unregulated you have your answer. Until that's been cleared up you won't see any large institution using it. That's my thoughts and backed up by various large banks.

Wouldn't banks be flexing their muscles to regulators if there is so much cost savings on the line?

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37 minutes ago, Archbob said:

I'm not sure I actually believe this. And if you look at the total assets of banks, both MUFG and JP Morgan are way bigger than BoA.

They may have more assets, BoA may have more dominance in cross border transactions. My biggest concern is the discussion in the first place, why would @Naweed be discussing this openly? His/her job would be a higher priority than letting any of us know, unless @Naweed is not a true insider, but connected by several links, which makes sense given the lack of details, and in that case, would make this little more than a rumor. 

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6 hours ago, mrhat75 said:

Wouldn't banks be flexing their muscles to regulators if there is so much cost savings on the line?

Banks have been using blockchain for a while actually. I believe UBS were amongst the first to actually use blockchain to some degree. But to the point, who said Banks aren't trying to flex their muscle with crypto. They do it through proper channels and like I said to keep things less publicised. Also, the case with XRP and some other coins is that there is real utility. 

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there maybe some business logic to it but this would surprise me given the philosophy has always been all welcome, the more the merrier as I understood it. I'm sure there will of course be different benefits given to different parties but exclusivity for one bank in a region (OK a big US one) just seems questionable. Not going to complain if there was & it bears fruit of course...…..

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3 hours ago, Ohbithandle said:

Binance explicitly refers to the use of Ripple products by BoA and JPM.  

Can we expect official news, @Naweed?

I'll be very surprised if JP Morgan are involved. 

As I've mentioned before, BOA are very silent on their association with CryptoCurrency and ripple for that matter. Largely because of the negative association with crypto. Until regulation is sorted and there is more optimism and posivitivty about crypto, don't expect "official" announcements. This also ties up with how discreet Brad has been too. 

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Sorry but personally I think this is very strange. If you don't allow other FI's to use it then you still have the need for Nostro/Vostro which Ripple tries to get rid of and still puts Liquidiy, FX and CCP risk in your books. If BoA wants to mitigate these risk, lower the subsequent cost of funding, and still be competative in pricing, you want others to use Ripple. 

  @Naweed Are you sure it doesn't have to do with which other banks/Fi's BoA can deal with using Ripple and which ones they have to use the conventional way? It would be strange if BoA wouldn't allow other banks/fi's to use it. Especially the G-SIB's you mentioned. 

Not saying that BoA isn't a frontrunner but just sounds very dubious. 

 

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1 hour ago, riskandxrp said:

Sorry but personally I think this is very strange. If you don't allow other FI's to use it then you still have the need for Nostro/Vostro which Ripple tries to get rid of and still puts Liquidiy, FX and CCP risk in your books. If BoA wants to mitigate these risk, lower the subsequent cost of funding, and still be competative in pricing, you want others to use Ripple. 

   @Naweed Are you sure it doesn't have to do with which other banks/Fi's BoA can deal with using Ripple and which ones they have to use the conventional way? It would be strange if BoA wouldn't allow other banks/fi's to use it. Especially the G-SIB's you mentioned. 

Not saying that BoA isn't a frontrunner but just sounds very dubious. 

 

I don't think many on this forum actually understand the scale of the project AT ALL. 

It's not a criticism to you personally or anything...But i mentioned at some point that BOA are doing this in three phases. Even if they weren't. What Ripple are offering is pretty demanding and takes a considerable time to implement, test, get right etc. You cannot do this with lots of banks at the same time...You start small, add a few more banks here and there. And then you have your ecosystem. 

I think the partnership that BOA have with other Banks and Ripple they all share some common strategy in terms of liquidity and FX transactions so it's easier to 'digest' the entire scale of the project from implementation to execution.

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