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The utility of XRP is once again in focus as market analyst Versan Aljarrah, the founder of Black Swan Capitalist, shares insights into the matter. In a post on X, Aljarrah emphasized that Ripple will leverage XRP to reimagine the global financial system.
Institutional role for XRP gains momentum
Notably, the analyst highlights Ripple’s filing for a national trust bank. Aljarrah noted that Ripple will act as the trust layer, building credibility, regulatory relationships and the necessary infrastructure that is key to the operation.
With over 13 years of experience in the sector, Ripple will instill the necessary confidence in XRP to succeed as a globally recognized and preferred asset for liquidity movement.
"One builds the rails, the other holds the value. One establishes confidence, the other enables settlement, and solves the problem of value," Aljarrah wrote.
He suggests that while Ripple creates the payment infrastructure, like partnerships with banks, XRP will function as the settlement asset. This will allow for seamless transfer of funds across borders by converting one currency to another in a cheap and fast way.
Aljarrah maintains it is not just about faster payment but a complete transformation of the global finance space. This might include liquidity, settlement, value transfer and security of funds.
Beyond this, XRP Ledger’s activation of a new feature, the Multi-Purpose Token (MPT) Standard, is another beneficial move that would improve the utility of XRP. This is because every transaction relies on payment of gas fees using XRP. Additionally, issuance of new MPT requires an XRP reserve, which is locked, a move that reduces its liquidity supply and could drive up the price.
Meanwhile, Brad Garlinghouse, Ripple CEO, believes the way to get more institutional adoption on the XRP Ledger is increased privacy. This will allow institutions to utilize tokenized real-world assets as collateral while zK proof guarantees the confidentiality of transfers and balances.
XRP nears key technical turning point
Market observers predict that with increased institutional adoption, XRP’s price outlook will soar.
XRP has suffered volatility in the last 24 hours, with the price slipping from a peak of $3.05 and breaching the $3 support. As of press time, XRP exchanges hands at $2.98, which represents a 2.43% decline.
The trading volume has also slipped by 2.4% to $4.97 billion within this time frame. With XRP completing a short-term golden cross, the bullish signal might serve as a catalyst for price in the coming days. Holders will have to wait and see if this could trigger upward momentum for XRP.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team