Discover where XRP is used, its primary functions, partnerships, and its role in cross-border payments. Understand why banks prefer it despite competition with stablecoins.

Where is XRP used?

XRP is primarily used in cross-border payment solutions developed by Ripple Labs. Its main goal is to facilitate fast, low-cost currency exchanges between fiat and cryptocurrencies, acting as a bridge for global transactions. Here’s where and how XRP is applied:

1. Financial Institutions and Banks:
   XRP is designed for real-time settlement and remittance. It’s used by banks and payment providers to replace traditional, slow systems like SWIFT. For example:
   • MoneyGram: Previously used XRP for remittance processes to speed up cross-border transactions.
   • SBI Holdings (Japan): Invested heavily in Ripple and XRP for seamless cross-border payments.
2. RippleNet:
   Ripple’s payment network uses XRP as liquidity in its On-Demand Liquidity (ODL) product. ODL removes the need for pre-funding accounts in destination currencies, saving institutions time and money.
3. Smart Contracts:
   Flare Networks, a smart contract platform, integrates XRP to expand its use in decentralized finance (DeFi).
4. Currency Exchanges:
   Mercury FX and Cuallix have utilized XRP for cross-border remittances, especially in corridors like the U.S.–Mexico route.
5. Wallets and Payment Platforms:
   Platforms like BitPay and BRD Wallet have integrated XRP, allowing users to store, trade, and use XRP.

Why not just use stablecoins or direct crypto transfers?
While stablecoins like USDT are less volatile, XRP’s value proposition lies in its speed (transactions settle in seconds) and cost efficiency. Banks and institutions use XRP to avoid holding volatile crypto or large reserves of foreign currency. Unlike retail users, these entities operate at scales where minimizing costs matters more than stable pricing over minutes.

For individuals, direct peer-to-peer transfers via exchanges (like Binance) are indeed an alternative. However, for financial institutions managing billions in cross-border payments, XRP’s infrastructure provides scalable, reliable solutions.