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Use XRP as a BRIDGE between StableCoins and Fiat


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Hi, I've been researching a lot about the XRP Ledger and the bridging mechanism, but I still have some questions. 

Can XRP work as a bridge between USDC(StableCoin) and Cross-Currencies payments(FIAT)?

Hypothetical example: I use a Wallet where I have some USDC deposited and I want to make a payment in a Fiat currency as the Colombian Peso, can XRP be used to bridge between USDC->XRP and XRP->COP?  (USDC->COP)

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So that brings us to the other way. Around 2015 Ripple realized it was having a very hard time getting businesses to use the XRPL. So it basically decided to gut it and turn it inside out so that inst

The XRPL is a multi-currency ledger, it can hypothetically be used to transfer anything. In reality, right now, no. The technology is all there, but the liquidity providers aren't. The first way

Thank you so much for your time, really appreciate it, Is there a way that I could have direct contact with you?, right now I'm developing a business model using XRPL and just all bymyself

The XRPL is a multi-currency ledger, it can hypothetically be used to transfer anything. In reality, right now, no. The technology is all there, but the liquidity providers aren't.

The first way to do it is within the XRPL. Any account on the XRPL can issue any currency it wants. These issued currencies are commonly called IOUs because they represent a claim that you can redeem the actual thing that it represents from the issuer.

Let's hypothetically say that Coinbase issues a USDC IOU on the XRPL - you can deposit actual USDC from Ethereum in exchange for USDC IOUs issued by them on the XRPL. Anyone who holds that IOU can send it back to Coinbase to redeem the actual coin to their Ethereum wallet.

Now let's say there's some money transfer business (ala Western Union) in Columbia who does the same type of thing. They issue COP IOUs on the XRPL that can be redeemed for actual pesos if you have an account with them.

The XRPL has a built in DEX. There are order books to trade anything for anything. If people trust those USDC and COP IOUs, markets will develop - people will place orders in the books to trade for them. Maybe not USDC for COP directly, but each one might have a market against XRP since XRP is the native currency of the ledger is likely to have the fullest order books against any given IOU.

When you go to make a payment, the XRPL has built-in automatic pathfinding. It will look at all the order books in the DEX and figure out an efficient way to get from the currency you're paying with to the currency you're recipient wants. When you go to send X amount of COP IOUs, the pathfinding will figure out, for example, that it can go from USDC to XRP to COP and tell you that you can send Y amount of USDC to make the transaction. You don't have to place orders in the order books yourself, it will do it all for you in one transaction to make the payment happen. Then your recipient just has to redeem the COP IOUs with the money transfer business to get the actual pesos.

Now back to real life. While this all can be fine, it hasn't really materialized because the current regulations on most places make it nearly impossible for most businesses to do it. There are a few exchanges who issue XRPL IOUs for both fiat and other cryptos, Bitstamp and Gatehub are the biggest.

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So that brings us to the other way. Around 2015 Ripple realized it was having a very hard time getting businesses to use the XRPL. So it basically decided to gut it and turn it inside out so that instead of the whole world having to issue IOUs on the XRPL to exchange value, the whole world could exchange value across networks the same way that the XRPL can exchange any IOU for any other one.

This is called the Interledger Protocol, or just Interledger for short. Instead of IOUs it uses market makers between networks. So if you want to send Y Colombian Pesos, it would figure out that some market maker with an account both at the recipient's bank and the XRPL will give your recipient Y pesos for Z XRP. And another market maker will give you Z XRP for X USDC. It works out this whole transaction where you send one market maker X USDC, he sends the other market maker Z XRP,  and he sends the recipient Y pesos. If any segment of the transaction fails, they whole thing will fail and everyone keeps they're original funds.

Interledger does not require using the XRPL, it could be left out of the pathway completely. But the XRPL implements they Interledger Protocol, so it's always an option to use in these type of transactions. On-Demand Liquidity (ODL) is Ripple's private product that uses Interledger, but I believe it's only available to us big banking clients. Anyone can implement a solution using Interledger, but I don't know of many who have outside of Ripple's ODL.

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47 minutes ago, brianwalden said:

So that brings us to the other way. Around 2015 Ripple realized it was having a very hard time getting businesses to use the XRPL. So it basically decided to gut it and turn it inside out so that instead of the whole world having to issue IOUs on the XRPL to exchange value, the whole world could exchange value across networks the same way that the XRPL can exchange any IOU for any other one.

This is called the Interledger Protocol, or just Interledger for short. Instead of IOUs it uses market makers between networks. So if you want to send Y Colombian Pesos, it would figure out that some market maker with an account both at the recipient's bank and the XRPL will give your recipient Y pesos for Z XRP. And another market maker will give you Z XRP for X USDC. It works out this whole transaction where you send one market maker X USDC, he sends the other market maker Z XRP,  and he sends the recipient Y pesos. If any segment of the transaction fails, they whole thing will fail and everyone keeps they're original funds.

Interledger does not require using the XRPL, it could be left out of the pathway completely. But the XRPL implements they Interledger Protocol, so it's always an option to use in these type of transactions. On-Demand Liquidity (ODL) is Ripple's private product that uses Interledger, but I believe it's only available to us big banking clients. Anyone can implement a solution using Interledger, but I don't know of many who have outside of Ripple's ODL.

Thank you so much for your time, really appreciate it, Is there a way that I could have direct contact with you?, right now I'm developing a business model using XRPL and just all bymyself

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