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Posted (edited)

@JannaOneTrick pointed to this tweet in another thread.

Also on https://ripple.com/xrp/market-performance/ it mentions 5 markets, meaning USD, AUD, MXN, PHP and EUR I think. That's been the case for quite some weeks now, so I don't think this corridor is that new, it just wasn't shown on the utility-scan tracker.

Edited by Xrpiet

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Posted (edited)

It is good to see growth on the utility scan which has been a bit flat for a while  I know the big banks are well funded with nostro accounts on both ends, I hope this corridor will be used a  lot by fintechs and they will undermine bank domination.

Crypto Eri speculates Chris Larson has been moving large vol of XRP over the last few days to fund new ODL exchanges/market makers

Edited by Julian_Williams

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Posted (edited)

I think it's a valid use case (e.g. Moneygram converting EUR to USD) using the available rails from ODL. It follows as a consequence from having ODL market makers available on XRP<->EUR and XRP<->USD. And because it involves the same exchange the XRP does not have to be transferred via the XRPLedger. 

If the exchange rate is cheaper than other markets, then why not? I think this can happen from time to time due to imperfections in the EUR<->XRP and/or USD<->XRP markets. And of course, enough liquidity on both currency pairs, such that the order books are not hollowed out

Edited by jn_r

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Posted (edited)
1 hour ago, jn_r said:

I think it's a valid use case (e.g. Moneygram converting EUR to USD) using the available rails from ODL. It follows as a consequence from having ODL market makers available on XRP<->EUR and XRP<->USD. And because it involves the same exchange the XRP does not have to be transferred via the XRPLedger. 

If the exchange rate is cheaper than other markets, then why not? I think this can happen from time to time due to imperfections in the EUR<->XRP and/or USD<->XRP markets. And of course, enough liquidity on both currency pairs, such that the order books are not hollowed out

agreed, hugs.

#spread the cesar virus

Edited by Jotaro

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8 hours ago, zerpener said:

Looks like a large amount of potential new EUR/USD ($1.5m) and also more USD/EUR transactions spotted on utility scan!

Has this corridor been announced? Could we speculate if this is testing or a real customer use case? 

Yep! I think they announced it back in Jan or Feb, but since the utility scan volumes looked low at the time it didn’t get much attention. Turns out the algorithm just wasn’t showing those trades yet — it’s probably been ramping up alongside USD > PHP since the start of the year.

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It's my understanding that these ODL transactions at Bitstamp involve EUR>XRP and then XRP>USD. The XRP are not sent across the XRP ledger as they are traded in house on the same exchange.

However, I have a question: In principle, could these ODL transactions use Bitstamp's EUR/USD market, and bypass XRP altogether?

Most crypto exchanges don't have fiat/fiat pairs, but Bitstamp does. There is very little liquidity on the EUR/USD pair, but this could change in the future.

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1 hour ago, mrak said:

It's my understanding that these ODL transactions at Bitstamp involve EUR>XRP and then XRP>USD. The XRP are not sent across the XRP ledger as they are traded in house on the same exchange.

However, I have a question: In principle, could these ODL transactions use Bitstamp's EUR/USD market, and bypass XRP altogether?

Most crypto exchanges don't have fiat/fiat pairs, but Bitstamp does. There is very little liquidity on the EUR/USD pair, but this could change in the future.

Technically it is possible, but that is not how the ODL rails are built. XRP is always involved as one of the pairs. 'XRP the base' as they used to say

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1 minute ago, jn_r said:

Technically it is possible, but that is not how the ODL rails are built. XRP is always involved as one of the pairs. 'XRP the base' as they used to say

But is it technically possible NOW?

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Posted (edited)
12 minutes ago, mrak said:

But is it technically possible NOW?

I think the software is not built for that, so I think 'no'. But I am no insider in Ripple ODL software, so really can't tell for sure...

On a non-technical note, it would require market makers on every possible orderbook for Bitstamp, one for USD->MXN, one for USD->PHP, one for EUR->MXN, etc.. If you use one base currency, then on Bitstamp you only need one type of market maker, XRP->USD. And since Bitstamp is also home-base for euro-zone, it requires also market makers for XRP->EUR

Edited by jn_r

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6 hours ago, mrak said:

It's my understanding that these ODL transactions at Bitstamp involve EUR>XRP and then XRP>USD. The XRP are not sent across the XRP ledger as they are traded in house on the same exchange.

However, I have a question: In principle, could these ODL transactions use Bitstamp's EUR/USD market, and bypass XRP altogether?

Most crypto exchanges don't have fiat/fiat pairs, but Bitstamp does. There is very little liquidity on the EUR/USD pair, but this could change in the future.

Exactly. These transactions probably pass XRP altogether. Why would they use an intermediate asset if they can just exchange between USD/EUR directly? Otherwise XRP would already need to be more efficient than existing USD/EUR corridors. I think this is just another case of being too optimistic. (especially what Eri said about Larsen moving XRP for new corridors: why would he if Ripple has 50% of the supply to do exactly that?).

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9 hours ago, jn_r said:

However, I have a question: In principle, could these ODL transactions use Bitstamp's EUR/USD market, and bypass XRP altogether?

bypass the XRP LEDGER but not the XRP which remains used for liquidity

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5 hours ago, SquaryBone said:

Exactly. These transactions probably pass XRP altogether. Why would they use an intermediate asset if they can just exchange between USD/EUR directly?

No.  Because 

  • these trans are being tracked from the api so they are there,  they already exist, as EUR XRP not as EUR USD.  Did you not understand what they mean when they say ‘track the trades’?
  • as was said before you posted,  there is very little liquidity EUR USD on the exchange
  • and as also was said earlier, the software is created to make FIAT XRP, then XRP FIAT trades.  This is in line with what it is already doing.

 

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