Ex-Ripple Executive: Next Phase Is Banks Using XRP For Settlement

Crypto researcher SMQKE (@SMQKEDQG) recently shared a video highlighting Ripple’s strategic direction with XRP. In it, Dilip Rao, a former Ripple executive, explained how the company plans to expand the use of XRP in banking and cross-border payments.

Onboarding Institutions First

Rao emphasized that the initial step in Ripple’s plan is connecting banks to its network. “If you don’t have connectivity, you can’t even start,” he said. According to Rao, Ripple aims to integrate banks so they can operate more efficiently with existing payment systems before introducing new capabilities. He described this phase as essential for adoption.

Banks currently settle payments primarily using fiat currencies. Rao explained that the current infrastructure works, but the next phase introduces XRP as an alternative. This approach allows institutions to manage transactions without holding multiple currencies in various countries, streamlining cross-border operations.

XRP as a Settlement Option

Rao highlighted a key shift in strategy: offering banks the choice to use XRP for payment settlements. He explained, “Instead of the German bank holding Turkish Lira, they could say, ACT Bank, are you able to accept XRP and give me Turkish Lira?”

This system enables rapid settlements for both small and large transactions. “Here’s 100 Lira worth of XRP, here’s a million Lira worth of XRP, and instantly that can be settled without having to hold balances,” he noted.

By providing XRP as a liquidity option, Ripple positions the token as a practical tool for international transactions. Banks can reduce exposure to holding foreign currencies while maintaining speed and security in payment processing. Rao described this as the ultimate goal of the strategy, in which XRP functions as a bridge currency for global settlements.

Phased Implementation

Rao stressed that Ripple’s approach is gradual. First, banks connect to the network and improve their current processes. Once they are comfortable, they can expand operations across multiple countries without the limitations of holding local currencies. XRP provides the solution for scaling payment services worldwide.

The phased strategy shows Ripple’s focus on adoption and usability. Banks are encouraged to build services on the network initially using traditional currencies, then transition to XRP as they grow more confident in the system. This plan reinforces Ripple’s commitment to integrating XRP into global financial systems.

Ripple’s strategy could redefine how institutions handle foreign exchange and payment liquidity. With banks onboarded and XRP integrated into settlement processes, the company positions itself to offer scalable, efficient solutions for global financial operations, marking a significant step in the evolution of the XRP ecosystem.

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