Ripple’s offering and institutional penetration with its XRP Ledger have always been at the forefront of discussions when it comes to the crypto industry. Recently, there has been a lot of debate about whether Ripple will use the XRP Ledger to replace SWIFT, which processes trillions of dollars worth of transactions every year. However, it seems that Ripple is still far from this dream as its CEO has highlighted some key details that remain to be put in place before institutions can be properly onboarded.
The Preparation Of The XRP Ledger
In an X (formerly Twitter) post, an XRP Validator who goes by Vet_X0 revealed the contents of the conversation they had with Ripple CEO Brad Garlinghouse. According to Vet, they had asked Garlinghouse what the path to institutional adoption of the XRP Ledger was, and the CEO had simply replied that it was privacy.
Basically, for institutional investors who carry out large transactions to be able to use a public ledger, they would want to be assured of the privacy of their transactions. This would allow them to transact with ease of mind without being worried that they were being tracked every step of the way.
Given this, the pundit explained that all of the moves that Ripple had been making regarding the XRP Ledger finally make sense. The first of these was the fact that there have been many developments surrounding compliance on the ledger. This ranges from to implementation of a Decentralized Identifier (DID) and also Credentials, as well as the expected launch of Permissioned Decentralized Exchanges and Domains.
Another giveaway is the fact that Ripple launched Multi-Purpose Tokens (MPTs) on the XRP Ledger. This was another step in its domination of the tokenized assets space, allowing for easy and seamless tokenization of assets on the XRP Ledger.
The Last Step To Institutional Adoption
With the changes listed above already in place, only privacy, as well as lending and borrowing, remain to be implemented. Vet explains, though, that these are already on the way, especially with the XLS-66 expected to land soon.
Vet explains that if Ripple is able to implement privacy for the XRP Ledger using ZK-Rollups, it helps to verify the transactions of institutions on-chain while allowing the computation to happen elsewhere. They would also be able to be issued secure credentials on-chain to help with KYC/AML stipulations, while being able to use DEXes, as well as use real-world collateral on-chain to borrow from other institutions.
Finally, the validator also points out that XLS-101 smart contracts on the XRP Ledger could be the key to this. “For the security of the network and as a glue for all fixed functions tools we have,” he said.
Featured image from Dall.E, chart from TradingView.com
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