Ripple utility within the banking sector

As we have mentioned before, the Ripple ecosystem and the XRP coin were not created to be the change of the traditional system, but were raised with the objective of becoming the bridge between the traditional system and the innovation of technologies.

Faced with this reality, Ripple has sought to become the best friend of the banking and financial sector, providing tools so that they can improve their services and thus have a greater appeal in a market that is moving faster and faster.

This position is what has caused many to call the project a “betrayal” of the raison d’être of cryptocurrencies . Helping the “enemy” so that he can adapt to the expectations that cryptocurrencies are generating is not perceived as positive, and this is despite the fact that Ripple has helped a more mature financial sector become interested in cryptocurrencies.

In this article we will delve into what are the utilities that Ripple provides for the financial and banking sector, as well as we will also point out how they have been embodied in practical cases in real life.


According to the information that is handled within the official Ripple page , the RippleNet network allows international payments to be processed instantly and with the possibility of tracking them, in addition, all within an encrypted platform and with extreme security. According to Ripple, with these tools banks can start working in other markets, as well as offer their national clients the possibility of sending payments anywhere.

The volume of money that remittances handle is one of the attractions that they offer so that banks can use RippleNet to send international payments. And this market is precisely one of the most worked within the ecosystem.


To work within RippleNet there are three software tools that are applied within the system: xCurrent, xVia and xRapid.


ripple and graphs

XCurrent is software designed to allow banks to settle international transactions between banks with the possibility of tracking payments at all times. XCurrent also presents a predefined rulebook in order to provide legal security between the parties involved in the operation.

According to the information presented in the xCurrent White Paper , the software presents a series of tools to meet the objective. The first of these is Messenger, a two-way messaging component that is maintained between the banks involved. In this way, banks can quickly exchange information about the KYC, commissions, exchange rates, risk of the operation and any other important detail of the operation.

Each of the payments that are made within the system are identified with a unique ID that is used so that the banks can identify the operation correctly. Likewise, in the event that there is a delay in payments or any type of error in it, the ID allows you to identify the payment faster in order to resolve the situation.

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All this communication between the banks is maintained with the intention of providing transparency between the parties about the commissions and final costs of the operation. Likewise, with clear communication between the parties, it is intended to comply with the applicable regulations for the clarity of operations.

Validator is another of the tools within xCurrent and it allows you to confirm the validity or not of payments made within the network. This entire verification process is done cryptographically and ensures information on the availability of funds for the operation. The Validator is a tool that can be executed by one of the banks involved in the operation.

To record operations within xCurrent, banks use the ILP Ledger, an accounting book kept by each of the banks connected to the network, it is like a kind of private RippleNet. This book keeps track of all the financial operations that are carried out within the network and that involve the bank that has the ILP Ledger in question. Carrying transactions within the ILP Ledger allows operations to be closed in a matter of milliseconds, moreover, at any time since the network does not stop working at any time.

Finally, xCurrent has FX Ticker, the tool that interconnects the ILP Ledger of each one of the banks in order to ensure liquidity between banks and determine the execution or not of interbank operations. The FX Ticker will also be in charge of coordinating the transfers between the different ILP Ledgers so that the exchange rate is correct and evaluate that each of the parties complies with their part at the time of making the transaction.


This program is designed to provide liquidity within the RippleNet payment system. The system makes use of XRP, the RippleNet currency, to achieve liquidity at all times and in any of the currencies that the bank may need.

What the system does is connect the different currencies that may exist within the market to achieve, through the exchange of Ripple with each of these currencies, satisfy the needs that they may have in the bank or in the financial institution to achieve a transfer of funds between different currencies. It allows the system to work as a kind of bridge between all the currencies in the market.

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It is expected that in the future the program will have a shortest route search algorithm in order to determine the way to make transactions as quickly and cheaply as possible.


xVia is the interface through which banks can connect to RippleNet. In this interface it is possible to follow with total transparency the payments that are made within the platform and all this through a system understandable to the bank official. With the use of xVia the user can make use of the RippleNet without having to download the XRP ledger within a space.