By Tobi LobaRipple’s digital token XRP has recently received another notable recognition from a reputable quarter in the cryptocurrency industry.
Going by a report shared a few hours ago by Grayscale, the digital currency asset management platform that offers single asset and diversified exposure through private and public funds, XRP has gained momentum among financial institutions and individuals.
This remark was made about XRP in Grayscale’s November 2019 report and shared on its official Twitter handle on 24th November. This update was expectedly greeted with a lot of interesting reactions from XRP community members.
#XRP has gained momentum amongst both financial institutions and individual users. Why? Learn more about $XRP in our Building Blocks report, aimed to help investors of all levels better understand the digital asset class: https://t.co/ylWxQO4Rkk pic.twitter.com/BjbhHPGtTz
— Grayscale (@Grayscale) December 24, 2019
Grayscale Acknowledges XRP’s Fast Transaction
Grayscale says XRP is a native digital currency backed by XRP Ledger, the payment network based on peer-to-peer (P2P) that performs almost instant transaction of money transferred across the globe.
It furthered that both XRP and XRP Ledger are created to solve the problem of liquidity generating within the financial institutions that stick to traditional networks such as SWIFT, ACH, and FedWire system.
Grayscale also mentioned that XRP has a fast and secure funds transfer system, with cheaper transaction fees in converting different units of value that range from commodities to fiat currencies and to other digital assets in existence.
According to the report, the features mentioned above allow the network to possess the ability to capture the significant value of the global market that relatively worth US$2 trillion.
Grayscale also touched the emergence of Ripple, the US-based cross border payment firm that oversees the distribution of the digital token XRP. It said the firm was “first conceptualized in 2004 by Ryan Fugger”, which was followed by several tests that later resulted in the eventual launch of Ripple a few years ago.
Grayscale Sees XRP as a Different Crypto
Grayscale highlighted that the design and emergence of Ripple’s XRP make it a different digital currency when placed in comparison to other coins such as Bitcoin, Ethereum and others.
The digital asset managing platforms clarified that XRP is not backed by blockchain protocol but rather uses the XRP Ledger to confirm transaction authenticity by requiring the users on the network to reach consensus.
Additionally, it claimed that the maintenance and the development of technology supporting the XRP network is partly overseen by Ripple, the blockchain tech, with its digital token XRP in reserve and notable investors & partners.
Grayscale acknowledged the integration of XRP Ledger with a classic and unique subset of products and services such as RippleNet and On-demand Liquidity with the aim of serving its loads of significant Banks and financial institutions.
Conclusively, it said all the above-listed factors are quite serving as the propeller to push for the adoption of XRP as the better means for global payment.