Ripple Evolves into On-Chain Financial Services

In the past, Ripple showed less change within the crypto ecosystem compared to Ethereum-based technological shifts, primarily focusing on collaboration with traditional financial institutions.

Recently, Ripple has been expanding its on-chain ecosystem through continuous technical updates and new initiatives, transitioning to a structure where XRP and stablecoins operate on a single chain.

XRP's primary function traditionally was as a fiat currency bridge via On-Demand Liquidity (ODL), gaining attention with the narrative that it could become an international currency.

With the recent introduction of XLS-65 and 66 protocols, the on-chain credit lending market has begun to activate.

Due to these changes, XRP will be utilized as collateral for credit lending, and RLUSD will take on the role of a payment and settlement instrument. The increased demand for on-chain dollars (RLUSD) is closely linked to the expansion of this new financial structure.

The two assets form a mutually complementary ecosystem.

XRP takes on the role of preserving value, while RLUSD focuses on currency functions such as payments and lending.

The standard codes integrated by the Ripple Foundation enable ecosystem developers to create various financial products, and market interest rates can be formed through individual asset deposit pools.

A model for lending assets to market makers and distributing operational profits is expected to differentiate it from Ethereum DeFi, linking to institutional networks and ETFs.

This allows for a model where assets are lent to market makers, and operational profits are distributed as interest.

The differentiating point from Ethereum DeFi is the ability to create lending products by utilizing institutional networks and ETF market makers.

Evonodes' core objective is to secure competitiveness compared to Ethereum staking interest rates, and it is expected to offer differentiated product value through institution-centric financial services.

This implies the release of interest-generating products and the introduction of an unsecured credit lending model for institutions, structured similarly to traditional financial institutions' commercial paper issuance.

It can be used as a funding source for large market makers like Citadel.

Unsecured loans will be executed based on the corporate credit of global market makers such as Citadel.

Such unsecured loans, due to their inherent risk, command relatively higher interest rates and aim to differentiate themselves from past unsecured lending failures like Clearpool and Maple Finance with FTX.

As of Q2, it firmly holds the top position in Korea, recording a spot volume of 70 trillion won and a total of 250 trillion won including futures.

As of Q2, spot trading volume reached 70 trillion won, and including futures trading, approximately 250 trillion won in transactions were recorded.

XRP is moving beyond its role as a bridge currency, participating in the trend of on-chain financial markets by creating a borrowing market collateralized by XRP.

Similar to Bitcoin lending bonds, various XRP-based financial products are being developed, aiming to increase real-world usage demand for XRP through the influx of institutional investors.

These standards are currently in the draft stage, and if Evernode's introduction is confirmed, lending utilizing XRP is expected to increase significantly.

This is because it is actively used on Ethereum-based DeFi platforms like Spark, Aave, and Morpho, and it offers higher interest yields than other stablecoins, making it an attractive asset for investors.

Additionally, interest generated from XRP and RLUSD lending demand acts as an extra reward, increasing the yield.

This acts as a form of subsidy, providing additional interest rewards that enhance the attractiveness of stablecoin investments.

XRP, primarily used for On-Demand Liquidity (ODL) payments, is expected to expand its utility to the RLUSD-based on-chain collateral lending market.

The stablecoin used when XRP is pledged for loans is anticipated to be RLUSD, meaning the two assets will establish a complementary on-chain financial ecosystem.

This is interpreted as a positive signal for the market value and investment prospects that on-chain assets will bring, including token trading, collateralized lending, and financial structuring projects.