David Schwartz, CTO of Ripple, recently discussed the company's progress in making XRP useful for institutional purposes in a recent video.
The Journey Toward Broader Institutional Utility
Schwartz explained that Ripple is building market infrastructure to support major participants and deep liquidity. He noted that Ripple is working to create an environment where money can move efficiently between currencies and across borders. This would offer 'easy ways to get money in and out,' making the settlement system more valuable.
The Role of Liquidity and Utility
According to Schwartz, liquidity is a determining factor in the next phase of XRP's adoption. The ability for financial institutions to enter and exit positions quickly is vital for any asset intended for settlement. He highlighted that XRP's speed and cost efficiency might address longstanding challenges in global payments, both in cross-currency and cross-border applications.
The Future of XRP and Its Significance
Schwartz ties these developments to the future value of XRP as a settlement asset. He suggested that XRP could eventually serve as a core mechanism for large-scale transactions, aligning with Ripple's long-term goal of bridging gaps in cross-border finance. The community's expectations are heightened regarding XRP's evolution from speculative trading to utility-driven roles, reinforcing its importance in future financial systems.
Schwartz's remarks reinforce expectations within the XRP community that the token will evolve into a utility-driven asset, in line with Ripple's strategic vision.
