Ripple CEO Brad Garlinghouse believes that XRP has great potential for use in institutional payment systems that handle transactions worth about $16 trillion per year.
At the time of writing, the price of XRP was at $1.0478, up 0.10% since it opened in early trading on Monday in the Asian session.
In an interview with CNBC on June 26, Garlinghouse explained that Ripple currently operates a payment and clearing business as a result of several previous company acquisitions.
Overall, the business processes transactions worth about US$16 trillion annually.
However, he revealed that the use of digital assets such as XRP in the total number of transactions is still close to zero.
According to him, this situation actually opens up a huge opportunity to bring traditional payment systems to blockchain technology.
Garlinghouse explained that XRP is designed to help financial institutions conduct cross-border transactions faster, cheaper and more efficiently than conventional payment systems.
He also noted that the demand for blockchain-based payment solutions is growing among financial institutions.
According to Ripple, the company is now not just providing a payment network, but is also expanding its business through acquisitions of companies that offer services such as digital asset custody, brokerage and enterprise financial solutions.
All of these services are integrated to build a more complete digital payment ecosystem for banks and large corporations.
If more institutions start using blockchain in their daily operations, the use of XRP has the potential to increase significantly in the future.
