Ripple’s New CBDC Play Has No Direct Need For XRP
Ripple’s new CBDC platform comes two years after it announced a CBDC private ledger
DUSAN ZIDAR/Shutterstock modified by Blockworks
Ripple is launching a platform dedicated to central bank digital currencies.
The platform is a “frictionless end-to-end solution” that would allow central banks, financial institutions and governments to explore and issue CBDCs.
According to a press release, users can “holistically manage and customize the entire life cycle of fiat-based central bank digital currency, transaction and distribution.”
Through the platform, the issuer of the CBDC will be able to manage the CBDC, while the operator can utilize the distribution and settlement options, and the digital currency users can both pay and receive the CBDC.
In 2021, Ripple announced a private ledger for CBDCs. At the time, Ripple said that XRP could “be leveraged as a neutral bridge asset for frictionless value movement between CBDCs and other currencies.”
Ripple built both its private ledger and the CBDC platform on the XRP Ledger, and the “private ledger is based on the XRPL but does not require XRP to operate,” a Ripple spokesperson told Blockworks in an email. “Central banks using the [CBDC] platform do not use or interact with XRP,” they continued.
“As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations,” Ripple’s VP of CBDCs said.
Ripple stated in 2021 that around 80% of countries were reportedly exploring a CBDC. Recent reports suggest that this number has now increased to 90%.
Outside of Ripple’s ongoing legal battle with the SEC, the company has been actively engaged in mergers and acquisitions. On May 17, it announced the acquisition of Metaco for a sum of $250 million.
Metaco focuses on crypto custody for institutional investors and is based in Switzerland.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
