jakiro
Author: daniel kuhn, coindesk; compile: Tao Zhu, Bitchain Vision Realm
Ripple announced the demise of XRP.Well, fairly, accurately speaking, Ripple CEO Brad GarlingHouse (Brad Garlinghouse) announced that the mainstay of Silicon Valley cryptocurrency will launch a stable coin linked to the US dollar later this year.A completely opposite view.But in the long run, the use of XRP is weakening.
According to the company’s announcement, it is expected that the Ripple stablecoin launched later this year will obviously receive 1 to 1 support from cash equivalent such as US dollar deposits, US government bonds and other low -risk investment.According to reports, this idea is to create a more trusted alternative to replace assets such as Tether (USDT) and Circle (USDC).
In fact, as others have pointed out, the stable currency market worth $ 150 billion is crowded, but the profit is also very high.Tether is the first and largest stablecoin in the current leading market. It is essentially used as a cash cow. Many ambitions (from artificial intelligence to decentralized message transfer) for Tether’s CEO Paolo Ardoino are essentially used.
Faced with a fine of up to $ 2 billion in the US Securities and Exchange Commission (SEC), Ripple may be looking for a new, verified source of revenue.Galinhos is obviously not troubled by fierce competition. He told CNBC:In the future, stablecoin “The market will be different, of course, depending on the scale.”
Ripple’s existing business model (based on XRP LEDGER and on -demand liquidity and RipPlenet protocol sales financial services) are insufficient in many aspects.Although Ripple has achieved some success in establishing partnerships, it is becoming more and more obvious that legal financial institutions do not want to bear the volatility currency risk brought by unlocked digital assets.
In the history of Ripple more than ten years, it usually seems to be better at establishing a community (XRP army) and becoming a leader of encryption (whether the tokens are the key to the securities to the court).It is not very successful in building a company and individuals who really want to use.
Austen Campbell, a Professor of Columbia Business School and former PAXOS Stable Coin Fund Manager, said in a direct message: “No one uses XRP as a payment method, just as no one really uses BTC.”
Of course, this is not completely correct.David Lighton, CEO of Diameter Pay, said he cooperated with Ripple to conduct early pilot experiments of XRAPID (renamed Ripple ODL) to remit money between the United States and the Philippines.Although he no longer uses the specific service, he does use the Ripplent message transmission platform for some cross -bank transactions, which does not depend on XRP.
“Ripple has a first -class data structure, and most banks are behind,” Lighton said.”This is a very good product, but they no longer sell so much. I think they are to keep their old customers vitality -I don’t know why this is so.”
Lighton said that when he left the consumer’s remittance business, he stopped using ODL, but found that it was also a useful product.It helps him manage monetary risks by providing real -time settlement for small token transactions.”At present, it is not completely clear how these are combined together, because I have not used it at present. But it can be reasonably said that there are some added value because it can help enterprises reduce operating funds costs,” he said.
However, many well -known partnerships in Ripple failed.
Santander, one of the EU’s largest banks, refers to RIPPLE after realizing that using XRP cannot meet the needs of its customers.Due to the increasing cost of cross -border XRP payment, and Moneygram needs to establish a third -party relationship with the cryptocurrency exchanges in decentralized areas, the legendary relationship with MoneyGram is over.
MoneyGram stopped the transaction with Ripple. In 2019, Ripple invested $ 30 million to the remittance giant to use Ripplent. Previously, the shareholders filed a collective lawsuit, accusing Moneygram that XRP might be regarded as a securities.
Whether the XRP is a securities will have to wait until Ripple and SEC’s four -year legal struggle can only get real answers after the appeal.The current situation is complicated.Judge Analisa Torres discovered last year,XRP is not a securities by default (especially during the exchange), but it does represent the investment contract when Ripple sells tokens to qualified investors.
This is the problem.Over the years,Ripple basically raised funds through the sale of hundreds of millions of dollars of XRPs to investors every quarter.According to the US Securities and Exchange Commission, Ripple and two executives raised more than $ 1.3 billion in XRP through unregistered securities, of which about 770 million US dollars were found to violate Article 5 of the Securities Law.
Regardless of the appeal procedure, as a private company, Ripple’s financial status is difficult to understand.However, many quarters before the SEC’s lawsuit, these programmatic sales occupied a considerable share in non -machine XRP trading activities.
Ripple past claims,Ripplent has more than 200 customers from central banks and financial institutions from more than 40 countries.However, in general, in addition to the initial announcement of the company’s use of XRP for cross -border liquidity, there are few signs that the actual frequency of Ripple’s financial services is used.Usually, the pilot is only inside and is not used for consumers.
For example, Omar’s second largest bank DHOFAR Bank announced that it will use Ripplent in 2021 and provide customers with “the option to deposit up to 1,000 OMR into the Indian account through Ripple”.But this is the only content mentioned on the bank website.Many other applications (including payment applications and remittance services) have not mentioned Ripple at all on their company’s website.
Lighton said that if ODL is “a good enough business proposal” and he can “adapt to supervision and compliance risks”, he will consider using ODL again, but in terms of financial services, there are many upstream and downstream issues for internal risk rating for internal risk ratingRelationship to determine whether you cooperate with you who are not familiar with cryptocurrencies.
“It is really a difficult environment to do some cool and sexy things now,” he said.”I am a supervised entity. My most loyal is our anti -money laundering obligation.”
When asked if he was more willing to use stablecoins or services based on stable currency, Lighton said that after the Fed launched a new event supervision plan last summer, he let go.Essence
“There are some wonderful thoughts behind the stablecoin. The question is that no one really determines how to supervise them,” Lighton said.He mentioned that PayPal can remit money through its PUSD stabilizer on the platform XOOM, a platform similar to Western Union, which may be a step for Ripple to decline.
Fairly,Ripple’s XRP -based financial tools are mainly running in the background -although many people may still prefer financial tracks based on legal currencies rather than free floating currencies.This may be why more and more cryptocurrency companies and projects have decided to take the stable currency route.
In fact, Circle, the second largest stabilized currency issuer, has experienced many corporate re -evaluations before getting involved in the stabilization currency business -from point -to -point payment platform to Bitcoin wallet.Maybe this is a natural encryption life cycle.
