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Ripple News: XRP’s Role in Blockchain Interoperability

source-logo  coinpedia.org 10 May 2025 08:57, UTC
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Story Highlights
  • $XRP Evolves Beyond Finance: Now integrated with Cosmos and building EVM sidechains, $XRP is entering the multichain race for crypto interoperability.

  • Real-World Advantage: With 200+ financial partners and ultra-fast transactions, $XRP merges real-world trust with blockchain connectivity.

As Cosmos, Polkadot, and Chainlink push for blockchain connections, $XRP’s spotlight is now shining brighter. Interoperability has become a key trend for crypto mass adoption, and blockchains must communicate to avoid obsolescence. While $XRP has been known for its speed and financial focus, it’s now positioning itself as a major player in the multichain ecosystem.

🚨🔥CAN $XRP WIN THE INTEROPERABILITY WAR?

Cosmos, Polkadot, and Chainlink are racing to connect blockchains…

But $XRP may have a secret weapon—and it's not what you think.

Let’s unpack the truth. 🧵👇

— All Things $XRP (@$XRP_investing) May 10, 2025

$XRP’s Strength in the Real World

$XRP isn’t just fast and cost-effective. It has already integrated into over 200 financial institutions through RippleNet, with transaction speeds of 3-5 seconds and costs of a fraction of a cent. Ripple’s established trust with major banks such as Santander, Bank of America, and American Express is a notable advantage. Beyond banking, $XRP is expanding its use, with projects like Colle AI leveraging it for cross-blockchain NFT functionality.

Moving from Finance to Interoperability

$XRP is stepping into the multichain realm, now integrated with Cosmos through IBC and developing an EVM-compatible sidechain. These strides position $XRP to act as a bridge, interacting with DeFi ecosystems that were previously out of its reach. The future of $XRP is not just about banking but expanding into a multichain environment.

$XRP Faces Challenges

Despite its solid infrastructure and regulatory progress, $XRP faces key hurdles. Ripple Labs controls over 50% of $XRP’s token supply, raising concerns of centralization. Its DeFi presence remains in its early stages, and compared to Polkadot or Cosmos, $XRP’s smart contract functionality is still lacking.

The Path to Victory

$XRP’s potential for dominance in interoperability doesn’t hinge on hype but infrastructure. While others build the technology for blockchain communication, $XRP is already entrenched in real-world finance. By strengthening its payment rails and building interoperability on top of them, $XRP has the chance to become the ultimate value bridge, connecting not just banks, but the entire crypto ecosystem.

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