A viewer asked: Why would banks use XRP instead of private or permissioned ledgers they already control? This recording is Jake Claver's answer, in full and unedited.
Also coveredsettlement, stablecoin, liquidity
More on this subject: jakeclaver.com.
What this recording covers
Claver explains why financial institutions require a public bridge asset like XRP despite operating their own private or permissioned ledgers. He compares private bank ledgers to early intranet email systems, where communication was restricted to users on the same network. While individual institutions can use internal stablecoins or permissioned sidechains on platforms like Corda for intra-bank settlements between branches, transferring value across different institutions requires a standardized interoperability layer. Claver compares the XRP Ledger to open internet protocols that allow different email services to communicate seamlessly. Because institutions want to maintain private internal records while avoiding counterparty risk during inter-bank settlements, they need a neutral bridge asset. While retail payments and merchant processors can use various company-issued stablecoins, Claver explains that cross-institutional clearing requires a shared, neutral settlement bridge to connect separate permissioned financial networks.
Where this fits
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