Ripple and Stellar: Open Protocols for Institutions and Beyond

Pseudonymous tech researcher SMQKE recently caused a stir in the cryptocurrency community with a recent tweet highlighting a slide from a BNP Paribas

Pseudonymous tech researcher SMQKE recently caused a stir in the cryptocurrency community with a recent tweet highlighting a slide from a BNP Paribas presentation that classified Ripple and Stellar as “open protocols for institutions.” This classification has reignited the debate about the target audience for these blockchain networks and their associated cryptocurrencies, XRP and XLM.

While SMQKE suggests that retail investors were “lucky enough” to gain access to XRP and XLM, a closer look reveals a more nuanced picture. Ripple and Stellar were designed to address inefficiencies in the global financial system, particularly regarding cross-border payments. Traditional methods can be slow, expensive, and lack transparency. Ripple and Stellar offer faster transaction speeds, lower fees, and real-time settlement through distributed ledger technology.

Ripple Labs, the company behind the XRP-powered Ripple network, has a clear focus on collaborating with financial institutions. It offers a suite of products, including RippleNet, a global network that connects banks and payment providers. RippleNet leverages XRP, the native token of the Ripple network, to facilitate faster and more cost-effective international payments.

As a non-profit organization, the Stellar Development Foundation stewards the Stellar network, which also boasts partnerships with financial institutions like MoneyGram. However, Stellar has a broader reach, thanks to its open-source nature. The Stellar network is designed for individuals and businesses to use it for various purposes, including cross-border payments, micropayments, and asset issuance, all powered by the native token Stellar Lumens (XLM).

SMQKE's suggestion that retail investors were fortunate to access XRP and XLM is debatable. It might imply these tokens were never meant for retail investors but reserved for financial institutions only. However, both XRP and XLM are listed on major cryptocurrency exchanges, allowing anyone to buy, sell, and trade them.

Moreover, the long-term value proposition for retail investors in XRP and XLM will depend on the future adoption of these protocols within the broader financial landscape and the value that institutions and other participants derive from using them for their intended purposes.

This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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