• The World Bank believes that DLT solutions could also bring down compliance costs and improve the transparency and traceability of transfers.
  • They also praised Ripple’s xRapid calling it a “real-world solution” that’s being “actively tested.” 

The World Bank heaped praises on distributed ledgers, in particular, Ripple and called Ripple’s xRapid as “potentially transformational technology.” Marco Nicoli, the World Bank’s senior financial sector specialist, wrote a report saying:

“These shortcomings make the cross-border payment industry ripe for disruption and innovation. Some see distributed ledger technologies (DLT) as having the potential to drive industry-wide change. Indeed, B2B cross-border payments, traditionally characterized by fragmentation and opacity, are a potential use case for the successful implementation of DLT…

Using DLT solutions could also bring down compliance costs and improve the transparency and traceability of transfers. This could help ease the impact of the de-risking phenomenon that has affected the remittance services industry over the past few years. Increasing the transparency of transactions could increase the confidence of the banking sector in the remittances industry. Further, DLT solutions could potentially by-pass the de-risking issue altogether, by enabling remittance service providers to operate without the need for a correspondent banking relationship.”

The report also praised Ripple’s xRapid calling it a “real-world solution” that’s being “actively tested”:

“In 2018, Ripple, a fintech company, piloted xRapid, a DLT-based cross-border payments solution, along the very competitive U.S.-Mexico corridor. Financial institutions involved in the pilot saved 40%-70% in foreign exchange costs, and the average payment times was just over two minutes. The transfer of funds on xRapid took two to three seconds, with most of the processing time explained by domestic payment rails and intermediary digital asset exchanges.”

On the potential of distributed ledgers dominating cross-border payments in the long run:

“Whether DLT will be an effective solution to the challenges the remittances industry faces , and when the technology will reach sufficient scale to effectively disrupt this space, remain to be answered. In any case, there is ample opportunity – and of course need – for innovation in the cross-border payment industry.”


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

HYPE drops 6% amid Eyenovia plans to establish Hyperliquid treasury

HYPE drops 6% amid Eyenovia plans to establish Hyperliquid treasury

Hyperliquid (HYPE) sustained a 6% decline on Tuesday despite Nasdaq-listed Eyenovia's (EYEN) announcement that it entered a securities purchase agreement to offer up to $50 million of its shares to establish a HYPE treasury.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP dips as US involvement in Israel-Iran conflict looms

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP dips as US involvement in Israel-Iran conflict looms

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) prices hovered around key levels on Wednesday after falling the previous day. The crypto market turned risk-averse amid growing concerns that the United States could intervene in the escalating conflict between Israel and Iran. 

Crypto market tumbles as US missile strikes over Iran: SPX, VIRTUAL, and WIF lead the losses

Crypto market tumbles as US missile strikes over Iran: SPX, VIRTUAL, and WIF lead the losses

The broader cryptocurrency market is trading in the red as the US steps into the Israel-Iran conflict. Bitcoin (BTC) trades below $105,000 at press time, while meme coins such as SPX6900 (SPX) and Dogwifhat (WIF) lead the market pullback alongside Virtuals Protocol (VIRTUAL). 

Shorts weigh on Ethereum amid whale accumulation and strong ETH ETF inflows, experts reveal why

Shorts weigh on Ethereum amid whale accumulation and strong ETH ETF inflows, experts reveal why

Ethereum (ETH) is down 2% on Wednesday amid a simultaneous growth in accumulation and short positioning across ETH futures. The divergence follows investors leveraging a delta-neutral play to scoop yield.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP