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- The first Web3 bank is expected to be built on the XRP Ledger (XRPL) through a collaboration with Monerex.
- XRPL recently sealed another partnership agreement with Axelar Foundation to push for seamless interoperability and easy accessibility.
Financial Technology (Fintech) company Monerex has announced a groundbreaking partnership that would witness the building of the first Web 3.0 bank on the XRP Ledger (XRPL). According to the details, this initiative would lead to the much-expected fundamental shift in the financial sector where peer-to-peer transactions would be at the “center of operations” to eliminate intermediaries and significantly reduce cost.
XRP’s ETF was inevitable and the Monerex team is happy to see the whole SEC saga coming to an end for @Ripple..This is why we are grateful and excited to build the first Web3 bank on the XRPL! pic.twitter.com/sgB2ZOXy7X— Monerex (@MonerexOfficial) October 2, 2024
Per our investigation, Monerex’s innovative approach would capitalize on the scalability, security, energy efficiency, and decentralization of the XRPL to introduce a seamless and robust Web3 banking infrastructure. Interestingly, XRPL has been one of the most effective blockchains in the ecosystem with over 1,500 transactions per second. This positions it above the abilities of traditional systems and other blockchains. On top of that, it has a high transaction throughput with a settlement time of 2-5 seconds.
On its official website, Monerex also prides itself as an all-encompassing Web3 banking platform that unlocks the full potential of Decentralized Finance (DeFi). With the involvement of XRPL, this much-anticipated infrastructure would inherit the decentralization, security, and accessibility features of blockchain technology to enhance borderless transactions and financial inclusiveness.
According to reports, the effective implementation of Digital identity verification and Know-Your-Customer (KYC) protocols would also smoothen its onboarding process without the limitation of users’ backgrounds and locations. Just as with any other digital asset platform, the bank would provide support for cryptos, stablecoins, and traditional currencies.
An excerpt of the report reads:
(Its) community-driven governance ensures that decision-making processes are democratic, fair, and responsive to user needs. By decentralizing financial infrastructure, Web 3.0 banking promotes financial inclusivity, innovation, and resilience. Web 3.0 banking prioritizes security through immutable, cryptographic transactions, safeguarding users’ assets and data. Cryptographic techniques, such as public-key cryptography and hash functions, ensure the integrity and confidentiality of transactions. Immutable ledgers prevent tampering and revision, providing an auditable record of all transactions.
XRPL and Axelar’s Collaboration
Recently, XRPL collaborated with the Axelar Foundation to introduce seamless interoperability to the Ledger to drive forward a more interconnected blockchain. As we reported, the Axelar network was required to directly deploy cross-chain Decentralized Applications (dApps) on the XRPL.
Commenting on this, the CTO of Ripple and Co-creator of the XRPL, David Schwartz, pointed out that the collaboration would drive innovation and encourage accessibility.
The advancement of blockchain interoperability can break down the silos between networks, enabling seamless interaction and value transfer across diverse platforms. This shift will drive innovation, particularly in DeFi, and could help lead to a more interconnected and accessible blockchain ecosystem. This initiative from Axelar will help enhance the XRPL’s interoperability by extending it to a wider network of blockchain environments while complementing the XRPL’s rich feature set and opening up new pathways for utility and innovation.
According to analysts, these exciting developments could impact the price of XRP, which is struggling below $0.54 and is currently down by 15% in the last seven days.
