In a move that will undeniably excite the XRP Army, Bank of America (BOA) recently acknowledged that Ripple’s cross-border solution is innovative and praised it in a report. Bank of America is the second-largest banking institution in the United States. It’s, therefore, a no-brainer that this recognition is a giant leap for Ripple.
Ripple Receives Huge Recognition From Bank Of America
According to one XRP fan on twitter by the online alias BankXRP, Bank of America commended Ripple’s technology for transnational payments. BankXRP posted an image from a report by Bank of America where the bank refers to Ripple’s technology as an example of innovative technology.
As per the bank, Ripple’s global payments solution works perfectly as a cross-border treasury payments solution, foreign exchange market maker and cross-border treasury receipt solution.
The report further illustrated that the current proof of concept use case follows a linear model from the originator to the benefactor but in the future, this proof of concept will potentially be a simultaneous settlement model between the originator and the benefactor.
Bank of America also noted four potential benefits of Ripple’s cross-border payments solution: simplified correspondent banking model, transparency in payments, a possible way to provide liquidity in the United States and potentially reducing investigation and repairs.
The report stated:
“Innovation example: Ripple cross‐border solution. Ripple’s distributed ledger solution remedies legacy correspondent banking infrastructure challenges and provides bi‐directional messaging to enhance payment tracking, data transmission, and enables enhanced certainty in settlement.”
Bank of America : Ripple cross‐border solution Ripple’s distributed ledger solution remedies legacy correspondent banking infrastructure challenges and provides bi‐directional messaging to enhance payment tracking, data transmission, and enables enhanced certainty in settlement. pic.twitter.com/ScMSzfOU9c— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP)
It bears mentioning that Bank of America earlier admitted to testing Ripple’s distributed ledger technology. Also, in October this year, BoA posted a vacancy for a manager to coordinate the team working on the “Ripple project.”
What This Recognition Means For Ripple
Utility is one of the main drivers of the mainstream adoption of cryptocurrency. Ripple’s strategy for boosting adoption has always involved selling its DLT and XRP-centric solutions to global entities like banks and payment providers who use payment technology on a daily basis.
Ripple aims at making its XRP cryptocurrency and global payment solutions acknowledged as the go-to within their relevant markets and continuing to forge alliances around the world is meant to help Ripple attain that goal.
In terms of real uses cases, Ripple is undoubtedly winning the adoption race, albeit some detractors have criticized the firm for building centralized payments tech in a blockchain industry that glorifies decentralized money.
And as more behemoth institutions continue piloting and acknowledging Ripple’s XRP-based products, it might not be long before they finally adopt it, contributing significantly to XRP’s price growth.
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