Canary Capital's latest report highlights XRP as a standout digital asset in cross-border settlements, directly tackling the traditional system's requirement for banks to hold pre-funded accounts across multiple countries—which ties up significant capital. By using XRP as a bridge currency, financial institutions convert fiat to XRP at the point of transfer, move value over the blockchain instantly, and convert back to local currency upon arrival—all within seconds.
How XRP's bridge currency works
Canary Capital says this process bypasses locked funds and cuts operational costs for banks and remittance firms. The firm links these advantages directly to RippleNet and its On-Demand Liquidity (ODL) solution, which leverages XRP for near-instant settlements across supported payment corridors. Canary Capital emphasized: “Using XRP, banks do not need to pre-fund foreign accounts to process payments, unlocking working capital and providing instant access to liquidity.” The ODL platform targets friction in existing correspondent banking models, moving funds securely and rapidly via blockchain instead of letting them sit for days in transit. Organizations adopting XRP report shorter settlement delays and improved liquidity management for international operations.
Institutional uptake and ecosystem growth
A range of financial organizations have started trials or full adoption of Ripple's blockchain technology. Japanese firm SBI Remit, U.S.-based MoneyGram, Santander, and payment network Tranglo have deployed RippleNet services in selected corridors, signaling growing institutional appetite for blockchain-based settlement. On the retail side, platforms like BitPay support XRP payments, broadening its everyday use. Development on the XRP Ledger continues, encompassing decentralized exchanges, NFT marketplaces, asset tokenization, and cross-chain experiments. Ripple positions XRP as an efficient digital asset with a fixed supply model, contrasting with assets whose supply dynamics or high energy usage remain controversial. Developers say XRP's efficiency makes it a practical complement—or in specific use cases an alternative—to legacy payment frameworks like SWIFT. Ripple's broader goal is to modernize and accelerate global financial flows via blockchain. Ripple CEO Brad Garlinghouse recently said XRP could overtake Ethereum as the second-largest cryptocurrency by market cap if institutional adoption persists, though he noted this depends on sustained and growing institutional usage.