XRP is a decentralized cryptocurrency developed by Ripple to support its mission of transforming the financial sector. Indeed, this crypto project was exactly what Ripple needed to make its dreams a reality, as this asset is a fantastic decentralized digital coin that enables cross-border transactions. In this way, both Ripple and XRP could improve the traditional way of sending money internationally.
This occurs because when individuals need to send money globally, they must exchange their currency for another that is in circulation in the location where they are sending it. Because of this, they need to pre-fund their accounts or convert their assets, which comes with extra fees. The good news is that XRP addresses some of these shortcomings, making things much easier in the remittance landscape. Additionally, XRP can also serve as a bridge currency that institutions and investors worldwide can utilize to revolutionize their operations.
Nowadays, XRP has taken center stage, which is why you can see an increase in the XRP USD price. Since XRP has the potential to revolutionize global transactions, its price is likely to continue exhibiting an upward trend.
In this article, we will delve deeper into the main features of XRP and explore why it serves as an exceptional bridge currency. Keep reading to learn more.
Can XRP act as a Bridge Currency?
XRP has the potential to act as a bridge currency, revolutionizing the cross-border payment network forever. In this way, XRP can be used between companies from different locations that have different fiat currencies. In this scenario, XRP can eliminate the need for intermediaries and facilitate direct transactions without the need for currency conversion. When a fiat currency is exchanged for another, this can result in higher transaction fees, especially since traditional digital payment networks often involve intermediaries, such as payment providers or banks.
This is why international payments made traditionally can take longer and also incur additional fees. However, XRP offers them a solution, as it is a digital coin that enables seamless experiences due to its high liquidity. Additionally, with the XRP approach, companies or investors don’t need to convert or consider pre-founded accounts, as things work way faster. In this way, XRP offers an on-demand liquid solution that surpasses other alternatives.
Features that make XRP perfect for cross-border transactions
Speed, efficiency, and low cost
XRP can prove a fantastic option due to its low cost, which complements its high speed and efficiency. In the traditional global payments, this process was much slower, and to be completed, the money sent could take from 1 to 5 business days, which is something that no one wants to deal with. Instead, because XRP eliminates the need for intermediaries, transactions are finalized in 3 to 5 seconds. Additionally, compared with the fees of the traditional banking system, XRP doesn’t have the same high costs.
Good liquidity
In the business arena, companies seek on-demand liquidity when transferring money internationally. However, they face numerous challenges in traditional banking, which is characterized by complex processes and high fees. At the same time, companies need to have a large amount of money in their pre-funded accounts to be able to send money internationally.
However, because XRP has on-demand liquidity, this means that institutions or investors don’t need to have pre-funded accounts in this step.
Working together with the traditional bank solutions
Another significant advantage of XRP is its interoperability with traditional finance. This is another reason why it is considered a bridge currency. In the traditional finance system, digital payments are not as quick, and they are also not a low-cost option. However, Ripple has envisioned great solutions for XRP, and the company also aims to help banks, rather than replace their services entirely. This is why XRP was created with the goals of working alongside the existing financial infrastructure. So, its goal is not to replace it completely.
Integrating financial inclusion
Unfortunately, many regions around the world still lack access to traditional banking systems. The good news is that XRP can help in this regard, as it offers the possibility for anyone to participate in the global economy. In this way, XRP offers efficient solutions that also come at a low cost. This is achieved with the help of RippleNet, which provides better solutions for global finance.
How has XRP Evolved this Year?
This year, XRP has had a good year, starting with the presidential election of Donald Trump, who is a supporter of digital coins. With this election, Donald Trump aimed to make the USA the crypto capital and offer it a favorable environment for digital coins to thrive. One of the first steps Donald Trump took in his journey to make the USA a suitable region for digital currencies was to fire the SEC chairman at the time, who was quite restrictive regarding digital currencies.
As Ripple already had a lawsuit with the SEC, this news was beneficial for the company and could potentially turn to its advantage with XRP. Although the lawsuit didn’t close immediately or overnight, 2025 proved to be a great year, as both the SEC and Ripple reached an agreement, and the lawsuit was closed on August 7.
Last Words
With its extensive list of advantages, XRP can truly be used as a bridge currency and revolutionize international payments. In this way, it can enhance the user experience and provide a seamless way for users to exchange different fiat currencies.
As the world is already dealing with some restrictions, it is always a good idea to seek solutions that can address these problems. This was exactly the idea that Ripple had in mind when it decided to launch XRP. And from that moment, XRP and the Ripple payment network have been used by prominent companies, including Banco Santander, American Express, Tranglo, and SBI Remit.
