Axelar Network (@axelar): The fabric of finance is changing 🔄

The fabric of finance is changing 🔄 $XRP is set to lead the charge, paving the way for banks and institutions to adopt the new financial system. Axelar is integral to this. With the upcoming XRP Ledger integration, Axelar becomes the global connnectivity layer. Quote [@yorgosv_](https://www.twitter.com/yorgosv_/status/1881092514993611007) > $XRP has the potential to become the most important asset in global finance🌐🏦 > > Below, I outline a path towards this future👇 > > $XRP has quietly supported one of the largest cross-border payment networks in the world (RippleNet). But the fabric of finance is changing as financial institutions are launching their own blockchains, which will bring all financial infrastructure onchain⛓️⛓️⛓️ > > The question now is, what is $XRP’s role as the traditional banking system (100s of trillions of dollars) moves onchain? > > Let’s unpack how XRP could become the global settlement layer for all of banking. > > Over 500 companies already use $XRP for cross-border settlements through RippleNet, allowing users to remit over routes that traditional rails couldn't support. In other words, thanks to its deep liquidity on exchanges, $XRP is making financial institutions more interoperable. > > RippleNet's secret sauce is On-Demand Liquidity (ODL). Here’s a simple example of what this looks like in real life: > 1. German bank customer sends EUR > 2. EUR ➡️ XRP conversion (instant) > 3. XRP moves cross-border > 4. XRP ➡️ INR conversion (instant) > 5. Indian recipient gets INR in their local bank > > Total time: Seconds | Cost: Almost free | Reach: Global. > > Compare that to TradFi, where this same transaction would see funds bounce through multiple banks over 1-3 business days, costing up to $50 per transfer - and only working where banks have pre-existing relationships. > > Here's where things get really interesting! > > Last month, Deutsche Bank announced that they're launching an L2 via ZKsync: x.com/axelar/status/… > > This is just the start. Major banks are exploring blockchain technology. If you thought the rate of L2 launches in 2024 was wild, think again! > > Further to the continued L2 frenzy, this shift creates an unprecedented opportunity. In this new multi-chain banking world, XRP can bring its proven liquidity model onchain: > 1. Bank chain A: onchain swap EUR ➡️ XRP > 2. XRP Cross-chain transfer from bank chain A to bank chain B > 3. Bank chain B: onchain swap XRP ➡️ Local currency onchain > > The same efficient model, but now connecting *every* banking chain. > > Here's why this matters: > - After banks move their infrastructure on-chain, all financial transactions will happen on-chain (not just cross-border transactions). The scale of the opportunity is massive. > - And onchain, traditional messaging networks like SWIFT won’t work. Communication between bank chains will instead happen through blockchain interoperability protocols. > - Interoperability protocols need a liquidity layer, in order to facilitate cross-chain swaps across banking chains. This can be XRP. > > XRP makes a lot of sense as this global liquidity layer. Why? Because it provides: (1) a neutral asset, (2) deep liquidity, and (3) regulatory clarity. > - For (1) stablecoins won’t cut it, because no single national currency will be adopted across all nations. For example, Chinese banks won’t adopt foreign currencies for cross-bank transfers. > - For (2) there are only a few candidate assets that have deep enough liquidity (BTC, ETH, XRP). And you need a team that actively works with institutions to build out liquidity for the asset on the bank chains. Out of those assets, XRP is the only one supported by Ripple, a formidable organization with deep relationships in traditional finance. There’s no analogous entity in the BTC/ETH ecosystems. > - For (3) after defending against the SEC for multiple years, the XRP community is well positioned. > > Let's put what we’ve discussed so far in context so we can get a sense of the scale of what’s happening. We are looking at the following markets: > • Remittances market > • Traditional banking settlements > • DeFi > > XRP is positioned to play a substantial role across all these markets. > > XRP built the liquidity. > > Banks are moving onchain. > > For the final piece, we need blockchain interoperability. And this is where @axelar comes in. This vision isn't just theory. The future of global settlement is multichain and Axelar is making this future possible by enabling XRP to seamlessly bridge between any blockchain - public or private. > > Axelar has been live on mainnet for 3 years, with 70 chains connected. And after a year of development on XRPL, the Axelar<>XRPL connection is approaching mainnet launch. > > For more information on the integration: x.com/RippleXDev/sta…, x.com/sentosumosaba/…, x.com/paulbarrontv/s… > > @axelar is the internet of blockchains🛜⛓️ > Axelar provides the interoperability layer that connects blockchains, just like the internet connects personal computers. As this new internet needs a liquidity layer, $XRP is perfectly positioned to become the liquidity layer for global finance🏦🏦🏦