5 Reasons for Ripple and Banks Cooperation in Various Countries

Bittime - Ripple, the technology company behind XRP, is increasingly expanding its influence by collaborating with large banks around the world. 

What is the reason why Ripple and banks can work together? Read this article to find out more!

Ripple and Banks Cooperation: Membership in the ABA

The first reason why Ripple and banks can work together is Ripple's membership in the American Bankers Association (ABA). The ABA is a large organization representing more than 4.000 bank in the US.

By becoming a platinum member of the ABA in 2024, Ripple gets direct access to the managing banking networkthe $18 trillion in savings and channel almost $11 trillion in loans. 

This position provides a great opportunity for Ripple to promote its superior technology such as On-Demand Liquidity (ODL), XRP Ledger, and the XRP token as an integral part of the US financial system.

Read Also: Impact of XRP Adoption by Bank of America (BoA) for XRP in 2025! 

Ripple and Bank Cooperation: Success in Japan

The second reason why Ripple and banks can work together is Ripple's success in Japan. By 2025, approx 80% of banks in Japan have adopted Ripple's ODL product in their financial system. 

Technology it enables fast and cost-effective international transactions by leveraging XRP as a liquidity bridge.

This adoption of XRP shows how Ripple's solution can benefit the banking sector, especially in simplifying previously complicated and expensive cross-border payments.

Ripple and Banks Cooperation: Settlement of SEC vs Ripple Case

The third reason why Ripple and banks can work together is the SEC vs Ripple case which has come to light. Dcoupled with pro-crypto policies under the Donald Trump administration.

If the case is resolved, XRP could potentially gain approval for exchange-traded funds (ETFs), which could strengthen Ripple's legitimacy in the global financial ecosystem.

Read Also: Many predict that the XRP price will pump, what actually happens? 

Ripple and Bank Cooperation: Banking Innovation  

The fourth reason why Ripple and banks can work together is banking innovation launch by Ripple to attract more banks and fintech companies. 

This innovation includes several new products marketed as bank-class custodial solutions, as follows.

1. Transaction filtering.

2. New hardware security module (HSM).

3. Integration with XRP Ledger for Real World Asset (RWA) tokenization.

The product is marketed as a bank-grade custodial solution, expanding Ripple's focus from just payments to a wider range of services.

Read Also: XRP Price Analysis is Stable Even though the Crypto Market is Crashing 

Ripple and Bank Cooperation: RLUSD Stablecoin Launch 

Last, the reason why Ripple and banks can work together is mopuncuran stablecoin RLUSD in December 2024. With a market capitalization of sebig $53 million, This stablecoin can be used on the Ethereum and XRP Ledger networks.

RLUSD's integration with Chainlink services further strengthens the functionality of this stablecoin in DeFi, providing more choices for users and financial institutions.

Those are the 5 reasons kRipple's collaboration with banks in various countries. Not only does it expand the adoption of blockchain technology, but it also creates faster and more efficient cross-border payment solutions. 

Read Also: XRP Price Prediction to Increase in 2025, Here's the Reason! 

XRP FAQs

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP supports a cross-border payment system with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How much is 1 XRP USD?

Currently, 1 XRP is worth $2.75 according to Coinmarketcap. 

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Reference

Crypto News Flash, Ripple, ABA, and XRP: Strengthening Payments Through Banking Partnerships, accessed January 13, 2025.

coinmarketcap, Coinmarketcap XRP Currency, accessed January 13, 2025.

Author: IPR