Ripple Update thanksgiving 2023
Transaction banking is a $536 billion market globally today and is expected to grow at an annual rate of 6.6%, becoming a $738 billion market by 2027, according to BCG.
In 2023, payment is still fragmented; we don’t think one company has more than 1% of the total market transaction volume. It will take time for consolidation to happen. The most developed system so far is SWIFT, which is based on old technology.
To help consolidate its market share in the payment market, Ripple continues to fine-tune its payment solution with expert knowledge gained from more than a decade of experience serving enterprise customers worldwide. Several announcements were made at Ripple’s annual conference, Swell, to show how Ripple Payments can support various payment needs for 24/7/365 businesses across regions and currencies.
A Decade of Expertise in Streamlining Payments
Ripple’s expertise, honed over a decade of serving enterprise customers worldwide, is evident in its continuous refinement of payment solutions. In several announcements at the annual Ripple conference, Swell highlighted Ripple's commitment to efficiently meeting diverse business payment needs across various regions and currencies.
Regulatory Compliance and Global Reach
Ripple's acquisition of money transmitter licenses across numerous U.S. jurisdictions is a testament to its compliance and reliability. This regulatory approval allows Ripple Payments to offer its products and services within these areas. With a single onboarding process, Ripple customers can access nearly 100% of global payout coverage in over 70 markets, thanks to Ripple’s extensive international payments network.
Leveraging Blockchain for Enhanced Liquidity
Integrating the XRP Ledger’s native decentralized exchange significantly advances global liquidity options. This feature streamlines customer onboarding into new markets and enhances product performance. Ripple Payments’ expanded liquidity options ensure customers’ liquidity needs are met on demand, around the clock.
Ripple is more than a payment solution.
Interviewed by crypto Eri, Ripple DeFi Product Lead Jasmine (Jazzi) Cooper provides an inside look at on-chain Products and services on the XRP Ledger.
“There are incredible levels of global liquidity and adoption on the Ripple chain. We're seeing the rise of new asset classes that are promising opportunities for traditional finance operators as well as customers alike, and this stuff is actually happening. So, you know, financial institutions like JP Morgan, HSBC, even BlackRock, are now actively pursuing tokenization of assets and ancillary services on-chain. You know, we've all seen Citibank predict $4 to $5 trillion in assets will be tokenized by 2030, so it's quite an exciting time. Utility is really here. So, if we think about Ripple's approach in particular, we're really following the same ethos that we always have been, which is tackling some of the largest technical challenges in traditional finance. As a lot of people know, we started with cross-border payments and tackling the challenges of inefficiencies and costs with SWIFT. And now, we're really looking at the way assets are traded, settled, reconciled in traditional finance, and the problems that are associated with these, ranging from slow speeds, high cost, and equity of access. And we're trying to tackle this head on through the Ledger, and really making that, you know, a foundation for the next generation of on-chain finance.”
RIPPLE Revenues
Ripple's revenue streams and business model focus on its various services and technological innovations beyond its core payment solution. This analysis covered cross-border transactions, RippleNet, currency exchange, liquidity management, scalability, smart contract capabilities, tokenization, and enterprise blockchain solutions. These elements contribute to Ripple's broader revenue-generating capabilities and position it as a multifaceted financial technology and blockchain player.
Beyond being a payment solution, Ripple is a technology offering various financial transaction services primarily through its digital payment protocol and cryptocurrency, XRP. Here are the critical aspects beyond its basic payment solution:
1. Cross-Border Transactions: Ripple enables fast, low-cost international money transfers, significantly improving over traditional systems like SWIFT. This is particularly beneficial for banks and financial institutions dealing with international transactions.
2. RippleNet: RippleNet is a network of institutional payment providers, such as banks and money services businesses, that use solutions developed by Ripple to provide a frictionless experience to send money globally.
3. Currency Exchange: Ripple can be a bridge currency in transactions involving different currencies. This feature allows for smoother currency exchanges and reduces the need for pre-funded nostro accounts in cross-border transactions.
4. Liquidity Management: Through its On-Demand Liquidity (ODL) service, Ripple provides a solution to free up capital, often tied up in pre-funded accounts worldwide. This service uses XRP to bridge two currencies, allowing for more efficient capital usage.
5. Scalability and Speed: Ripple's technology is known for its scalability and fast transaction processing times, which are critical for large-scale financial institutions and payment providers.
6. Smart Contracts: Ripple is also exploring integrating smart contract capabilities, which could expand its use cases to include various decentralized finance (DeFi) applications.
7. Tokenization: Ripple's technology can tokenize assets, including fiat currencies and commodities, enabling them to be traded and managed on the blockchain.
8. Enterprise Blockchain Solutions: Ripple provides enterprise blockchain solutions, helping businesses improve the efficiency, transparency, and security of their operations.
Ripple XRP News
At the heart of Ripple's innovation lies XRP, a digital asset designed to act as a bridge currency. Unlike traditional banking systems that are slow and costly, Ripple, powered by XRP, facilitates near-instantaneous transactions across borders. This speed and efficiency are achieved through the Ripple Protocol Consensus Algorithm (RPCA), which validates transactions rapidly without needing energy-intensive mining.
XRP, as a bridge currency, simplifies transferring money between different fiat currencies. It eliminates the need for correspondent banks, reducing transaction fees and time. Major financial institutions like Santander, American Express, SBI Holdings, and PNC Bank have already adopted this system, reflecting Ripple's growing influence in the financial sector.
Ripple's recent collaboration with Onfariq, a payments fintech company, marks a significant expansion of its global payments network. This partnership connects Africa with critical regions like the U.K., Australia, and GCC countries, including Qatar and the UAE. This expansion has positively impacted XRP's market capitalization, which saw an increase of over $2 billion, reaching $37.44 billion. This growth underscores Ripple's influence and the increasing confidence in XRP as a facilitator of cross-border payments.
For more coverage about Ripple stock, subscribe to our club letter
Ripple Stock
Ripple's stock price has been hedging higher, though the price raise started before the judgment. The company has tendered up to 5% of its shares for $61.48, which is the price paid by investors at the Series C financing round in December 2019.
Ripple IPO
The recent ruling that classified XRP as a non-security digital asset, which is significant for Ripple, the XRP community, and the broader crypto sector, has ignited discussions about a potential Initial Public Offering (IPO) for Ripple. This speculation comes after a court victory against the US Securities and Exchange Commission, following nearly three years of legal battles.
In our opinion, it will take until the end of 2024 for the SEC case to be resolved. This means that Ripple will be able to resume its path to an IPO.
When Ripple decides to pursue an IPO, it will represent one of the first major cases of a blockchain company entering traditional financial markets. This would set a precedent within the cryptocurrency industry. An IPO could provide Ripple with additional capital for growth and enhance its credibility among conventional financial entities. However, as of now, many details, such as the possible valuation of the IPO and the timing of its launch, are still speculative.
Ripple
Ripple, founded in 2012, is a technology company based in San Francisco focusing on digital payments and blockchain solutions. It developed the RippleNet payment network and the XRP cryptocurrency to facilitate fast, low-cost cross-border transactions. Ripple's innovative technology is designed to improve the efficiency of financial institutions and payment providers globally, streamlining remittances and monetary transfers.
What is IPO CLUB
We are a club of Investors with a barbell strategy: very early and late-stage investments. We leverage our experience to select investments in the world’s most promising companies.
Disclaimer
Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.
