Ripple announced the launch of its first CBDC platform for institutional investors, stablecoins, and other digital assets. The platform, which is based on the XRP ledger, aims to further strengthen the company’s position as a leading developer of CBDCs (central bank digital currencies). The goal is to use the platform to include several million people in the financial system.
Read more about the plans of Ripple to launch its own CBDC platform and find other important financial news with the Born2Invest mobile app.
Ripple launches CBDC platform on XRP ledger
The fintech company announced the move in a press release dated May 18th, 2023. Ripple describes its own CBDC platform as a frictionless end-to-end solution for central banks, governments, and financial institutions to issue their own central bank digital currency. In addition, the platform is designed to cater to institutional investors and the creation of stablecoins.
Like the XRP blockchain, the platform is based on the XRP ledger. With the CBDC platform, banks can holistically manage the entire lifecycle of a fiat-based digital central bank currency. This includes the minting (creation on the network), distribution and destruction of these currencies. Large businesses and retailers should also be able to use the platform to use these currencies as easily as modern card payments and even offline.
Millions of users around the world should be included on the CBDC platform
The fintech company is already working with several central banks as part of the platform, as James Wallis, VP of RippleX for central banks and CBDCs pointed out:
“As a trusted partner to several central banks, we believe this platform will help many central banks and governments that are developing plans and technology strategies for CBDC implementations solve their problems.”
In addition, Ripple discloses in the press release that it is specifically targeting the inclusion of the underbanked – people who have limited or no access to bank accounts or funds. As Surangel Whipps Jr, President of the Republic of Palau pointed out, Ripple plans to use the platform to give millions of underbanked people access to the banking system.
Nevertheless, the company is also targeting regions with strong financial inclusion, as through Ripple’s recent acquisition of Swiss firm Metaco. The fintech company is thus further penetrating the European market, specifically targeting institutional investors: inside. Furthermore, the fintech company is working on a pilot project in Hong Kong for the tokenization of real estate. In this way, the company aims to secure market share in the Asian market.
With the launch of the CBDC platform, the fintech company can further expand its leading role in the CBDC sector. Only recently, the consulting firm Jupiter Research predicts that the XRP ledger and Ripple are likely to play a crucial role, especially after the first CBDCs emerge.
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First published in BE [IN] CRYPTO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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