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Which Financial Institutions Use XRP?

Which Financial Institutions Use XRP?

Discover which financial institutions use XRP and how they leverage Ripple's technology for faster, efficient cross-border transactions. Learn about global banks, payment networks, recent adoption ...
2025-09-03 00:42:00
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What Is XRP and Why Do Financial Institutions Use It?

XRP is a digital asset designed for fast and secure global payments, most notably used on Ripple’s blockchain-based network. Financial institutions use XRP in cross-border transactions to achieve faster settlement, lower costs, and greater transparency compared to traditional banking systems. In this article, we’ll dive deep into which financial institutions use XRP, the reasons behind their adoption, and the latest updates regarding its integration in the global financial ecosystem.

Background: RippleNet and XRP Adoption in Banking Sectors

RippleNet, developed by Ripple Labs, is a network of institutional payment providers such as banks, non-banks, and remittance companies that use Ripple’s payment technology, sometimes with XRP as a bridge currency. Unlike Bitcoin, which is primarily used as a store of value, XRP’s primary use case is to facilitate instant liquidity and streamline international money transfers.

Key Features of RippleNet and XRP:

  • Speed: Transaction confirmations in 3-5 seconds.
  • Cost-Efficiency: Average transaction fees are fractions of a cent.
  • Scalability: Can handle 1,500 transactions per second.

According to Ripple’s official reports and market analyses, over 300 financial institutions across 40+ countries have joined RippleNet, though not all use XRP directly. Sources like Statista and Ripple’s customer showcase confirm that big names have piloted or integrated Ripple’s technology.

Leading Banks and Payment Providers Using XRP or RippleNet

While not every bank on RippleNet utilizes XRP, some notable institutions have publicly announced their use or pilot of XRP, especially for on-demand liquidity (ODL). Here are some of the key players:

| Institution | Type | Region | Usage of XRP/ODL | |---------------------|-------|--------------|-----------------------------------| | Santander | Bank | Europe/Global| RippleNet, pilots with ODL | | SBI Holdings | Bank | Japan | SBI VC Trade, ODL trial | | PNC Bank | Bank | USA | RippleNet | | American Express | Payments | Global | RippleNet (ODL status undisclosed) | | Tranglo | Remittance | Asia | Confirmed ODL (XRP) | | Novatti Group | Payments | Australia | ODL for instant payments | | Azimo | Remittance | Europe | ODL rollout in the Philippines |

Notable Highlights

  • SBI Holdings, a major Japanese financial group, is among the most active, supporting XRP via SBI VC Trade.
  • Tranglo, in partnership with Ripple, enables cross-border remittance using ODL and XRP across Southeast Asia (Ripple Insights, 2023).
  • Novatti Group began leveraging XRP for instant Philippine-Australia corridors.
  • Santander is exploring XRP primarily for internal usage and select cross-border corridors.

Some banks prefer using RippleNet without direct XRP involvement due to ongoing regulatory developments, particularly in the US. However, the adoption of XRP-powered ODL is gaining traction, especially in Asia-Pacific, Latin America, and the Middle East.

How XRP Powers Cross-Border Payments for Financial Institutions

Traditional international bank transfers can take several days and require multiple intermediaries. XRP, via Ripple’s ODL, acts as a bridge currency—converting one fiat currency to XRP, transferring XRP nearly instantly, and converting it to the recipient’s local currency.

Typical Cross-Border Transaction with XRP:

  1. Bank A wants to send $1 million USD to Bank B in the Philippines.
  2. Instead of going through multiple correspondent banks, Bank A buys XRP with USD.
  3. The XRP is sent to Bank B’s exchange in the Philippines in seconds.
  4. Bank B converts XRP to the local currency (PHP) and credits the recipient.

Benefits:

  • Reduces the need for pre-funded nostro accounts.
  • Near-instant finality for cross-border settlements.
  • Lower capital requirements for international payments.

Recent data from Dune Analytics and Ripple’s Q4 2023 report indicates ODL volumes reached over $15 billion as of early 2024, with Asia-Pacific comprising the majority share.

Recent Developments: Expanding Institutional Adoption and Regulatory Updates

Project Updates and New Corridors

As of early 2024, the following trends and updates are notable:

  • Latin America: Ripple announced new partnerships with partners like Travelex Bank in Brazil focusing on ODL for intra-Latam remittance.
  • Middle East & North Africa: Institutions such as Lulu Exchange have launched ODL corridors to support workers' remittances, as confirmed by Ripple.
  • Europe: RippleNet’s customer base continues to grow, with interest in ODL corridors from Europe to Southeast Asia.

Regulatory Landscape

The regulatory clarity around XRP, especially after the 2023 US court ruling that XRP isn’t inherently a security, encouraged more institutions to experiment with ODL. However, further regulatory clarity is expected as adoption scales.

Note: Whenever considering trading or holding XRP, always use regulated exchanges like Bitget Exchange, known for its security and compliance.

Frequently Asked Questions About XRP’s Use in Financial Institutions

Do All Banks on RippleNet Use XRP?

No, not all banks or payment providers on RippleNet use XRP directly. Some use Ripple’s network solely for messaging and payment settlement, while others leverage XRP for on-demand liquidity, especially in regions with high remittance volumes and less established correspondent banking.

What Are the Advantages for Banks to Use XRP Over Traditional Systems?

  • Speed: Transactions typically clear in seconds, compared to days using SWIFT or other legacy systems.
  • Cost: Lower transaction and FX fees.
  • Liquidity: Banks can eliminate the need for pre-funded accounts, freeing up capital.

Are There Any Risks for Financial Institutions Using XRP?

Potential risks include regulatory uncertainty in specific regions, exchange rate volatility, and the need for robust infrastructure. Leading institutions work with regulated exchanges and keep track of compliance to minimize these risks.

Which Countries Are Most Active in Adopting XRP for Payments?

Currently, Japan, the Philippines, Brazil, and the United Arab Emirates are leading corridors for XRP-based ODL payments. Growth is also noted in India and several African countries.

How Can Financial Institutions Start Using XRP?

  • Partner with Ripple as a RippleNet or ODL participant.
  • Integrate with reliable crypto exchanges.
  • Utilize enterprise-grade wallets like Bitget Wallet for secure custody and transactions.

Comparing RippleNet to Other Blockchain Solutions

| Feature | RippleNet/XRP | SWIFT | Stellar (XLM) | |--------------------------|---------------|-----------------|---------------| | Settlement Time | 3-5 sec | 1-3 days | <5 sec | | Transaction Fees | < $0.01 | Varies | < $0.01 | | Focus | B2B, Bank-2-Bank| Interbank Transfers | Retail & Remittance | | Adoption (as of 2024) | 300+ institutions| 11,000+ banks | 100+ partners | | Crypto Bridge Needed | Yes (XRP) | No | Yes (XLM) |

Sources: Ripple Insights, SWIFT publications, Stellar.org statistics.

The Future Outlook for XRP in Financial Institutions

XRP’s adoption by financial institutions is growing as new remittance corridors open and regulatory clarity improves. With major banks and fintechs joining RippleNet and piloting ODL with XRP, the potential for faster, cheaper, and more scalable cross-border payments is being realized. As you explore digital asset opportunities, utilizing secure platforms such as Bitget Exchange and Bitget Wallet ensures compliant and safe access to XRP. Stay updated with project developments and regulatory news to see how XRP continues to reshape international finance.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.
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