Blockchain-powered global payments are evolving at a rapid pace. Companies are increasingly demanding lower fees, faster settlement times, and improved capital efficiency. Into this shifting terrain steps XRP, once considered a niche digital asset, which is now gaining serious traction for business-to-business liquidity use-cases, according to SMQKE.
From Theory to Practice
The enterprise adoption of XRP begins with Ripple Labs’s payment network, RippleNet, and its On-Demand Liquidity (ODL) service. ODL utilizes XRP as a bridge asset to instantly convert one fiat currency into another. Traditional payment systems often require pre-funded nostro accounts; ODL effectively sidesteps this entire requirement.
In a significant real-world example, the payments provider Tranglo successfully enabled RippleNet’s ODL across 25 payment corridors. The firm reported processing an impressive 250,000 transactions, totaling $48 million, within its first 100 days of operation. This illustrates that XRP is no longer merely a "potential" liquidity tool but is actively operational within enterprise payment flows.
“RippleNet enables financial institutions to efficiently handle B2B cross-border payments at lower costs by using Ripple's XRP token for liquidity.”
XRP 🤝 B2B Payments
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Why Liquidity Matters More Than Ever
For treasurers and global payment providers, locked capital represents a significant impediment to growth. Traditional cross-border payment systems tie up substantial amounts of foreign-currency liquidity. By leveraging XRP, firms can convert outgoing fiat into the token, move value globally in mere seconds, and then convert it back into the local currency.
The benefits derived from this approach are multi-fold, including lower funding costs, a reduction in intermediaries, and increased transparency. Early adopters of this technology have primarily been remittance firms and SME payment providers, which often face high costs under legacy payment systems.
Commercial Use-Cases Are Expanding
While remittances continue to be a prominent use case, business-to-business cross-border payments are steadily gaining traction. Platforms that utilize Ripple’s ODL can facilitate quick and cost-effective payments to suppliers, employees, or partners across different countries. This reduction in payment friction directly supports global commerce and enhances supply chain efficiency.
Furthermore, the XRP Ledger (XRPL), which serves as the underlying ledger for XRP, finalizes transactions in just 3-5 seconds. This offers a level of scalability and cost-effectiveness that traditional networks struggle to match.
Headwinds and Considerations
Despite the growing adoption, several key risks and considerations remain. The inherent volatility of XRP can be a concern for treasurers who are hedging against currency exposures. Additionally, the regulatory clarity surrounding XRP varies significantly across different jurisdictions. It is also important to note that while many banks participate in RippleNet, not all of them actively utilize the XRP bridge asset for their transactions.
Consequently, businesses must carefully weigh their internal risk governance policies, the availability of corridor liquidity, and the prevailing regulatory status before committing to full adoption of XRP for their payment needs.
The Bottom Line
SMQKE's analysis signals a significant shift for XRP, moving it from a speculative asset to a functional enterprise utility. When integrated with RippleNet and ODL, XRP is now being leveraged by firms actively seeking faster, cheaper, and more efficient cross-border liquidity solutions.
For companies involved in global payments or treasury operations, the message is clear: this is a critical moment to reassess existing infrastructure, payment corridors, and overall liquidity strategy. The time to explore token-enabled payment rails is now.