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XRP Is Solving Payment Problems

2025-07-20 21:25:23

XRP Is Solving Payment Problems

Main Idea

XRP is primarily addressing liquidity challenges in global finance rather than just payment problems, serving as a 'liquidity engine' through Ripple's On-Demand Liquidity (ODL) system and stablecoin integrations.

Key Points

1. Vincent Van Code argues that XRP's core role is solving liquidity bottlenecks, not just payment issues, by enabling $100 trillion in liquidity to move freely without systemic risk.

2. Ripple's ODL system allows financial institutions to bridge value between fiat and stablecoins (like RLUSD or EURØP) without pre-funding, reducing friction and improving capital efficiency.

3. XRP acts as a 'hydraulic fluid' in liquidity, facilitating real-time settlement while stablecoins like RLUSD and EURØP lock in fiat value on the XRP Ledger.

4. XRP's price is currently $3.53, with analysts predicting long-term value growth due to institutional adoption and Ripple's liquidity framework, including its stablecoin strategy.

5. Van Code emphasizes that XRP's true value lies in enabling frictionless, scalable liquidity, shifting its perception from a speculative asset to a utility-driven one.

Description

Vincent Van Code, a respected software engineer and blockchain analyst, recently offered a striking perspective on XRP’s true role in global finance. In a post on X, he argued that XRP is not solving a payments problem. Instead, it addresses a far deeper challenge: liquidity. According to Van Code, Ripple’s founding vision, formed over 14 years ago, centered on a powerful question: “How do we create unlimited liquidity without causing domestic inflation?” The answer was a digital asset that coul...

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