Bank of America (BoA) demonstrates its commitment to Ripple's XRP solution for international payments amidst the rising popularity of stablecoins.
BoA's Ripple Partnership
Bank of America's partnership with Ripple began in 2020, leveraging RippleNet—a cross-border payments network utilizing XRP for on-demand liquidity. This allows BoA to execute transactions in seconds using XRP as a bridge currency, unlike the slow and costly SWIFT transfers.
XRP vs. Stablecoins
According to the Director of the Digital Asset Group (DAG), XRP serves as an essential tool for institutional settlements due to its liquidity and regulatory certainty. Stablecoins like USDT and USDC dominate retail payments, but XRP, with its speed and low fees, excels in institutional scenarios.
BoA's XRP Integration
BoA's application of Ripple's ODL touches on areas such as 'Just-in-Time Manufacturing' and 'Treasury Optimization'. This delivers actual cost savings for corporate clients, for example, moving $50 million monthly via ODL allows for a savings of about $120,000 in fees.
Bank of America continues to actively utilize XRP, underscoring its status as a key tool for financial operations while noting the differing functions between XRP and stablecoins.
