XRP Set to Disrupt Massive $5 Trillion Derivatives Market
- Ripple joined ISDA in August, sparking speculation about a move into the derivatives market.
- Codius, a dormant smart contract platform, could be key to Ripples larger ambitions.
- Ripples EVM sidechain could allow Ethereum-based smart contracts on the XRPL, further boosting XRPs utility.
The XRP community is buzzing with speculation about Ripples long-term goals and what they might mean for XRPs price. According to the host of Common Sense Crypto (CSC), Ripples ambitions go far beyond just cross-border payments. The discussions have brought Codius, Ripples smart contract platform, back into the spotlight.
Ripple, long known for facilitating cross-border payments, might be eyeing a larger prize. The CSC host believes Ripples true aim is the derivatives market, a financial behemoth handling trillions of dollars daily. This theory gained traction after Ripple joined the International Swaps and Derivatives Association (ISDA) in August. Bitstamp, a prominent crypto exchange, has also encouraged Ripple to develop a derivatives exchange.
Kendra Hill, a controversial figure in the XRP community, has hinted at this for years. Hill claims that cross-border payments were merely a trial run for Ripples ultimate vision. According to Hill, Ripple was waiting for the right moment to roll out these larger plans, and that missing piece was Codius.
The derivatives market processes over $5 trillion in transactions daily, making it a key player in global finance. Since Ripples inclusion in the International Swaps and Derivatives Association (ISDA), XRP has experienced a 7% price increase. Additionally, Ripples market share in cross-border payments has seen significant growth, expanding by approximately 20% over the past two years.
XRP: Dormant Potential of Codius
Codius was introduced in 2014 by then Ripple employee Stefan Thomas. Unlike Ethereum, Codius was designed to interact with various blockchain networks, making it unique in its cross-blockchain operability. Despite this potential, Ripple shelved Codius in favor of focusing on its cross-border payments business.
David Schwartz, Ripples CTO, has consistently praised Codius, hinting that the platform might make a comeback. In 2020, he remarked that if he werent at Ripple, he would likely build a business around Codius.
The CSC host suggests that Codius was abandoned because smart contracts would have made Ripples payment solutions more costly, hampering its ability to compete with SWIFT. However, with the rise of the Ethereum Virtual Machine (EVM) sidechain for the XRP Ledger (XRPL), it seems Ripple may be reconsidering its stance on smart contracts.
While these theories remain speculative, the integration of smart contracts could significantly increase XRPs value. Some analysts suggest that, should Ripple successfully pivot into the derivatives market and revive Codius, the tokens price could see massive gains, potentially reaching previously unimaginable heights.
For now, these discussions remain speculative, but they offer a glimpse into what could be the future of Ripple and XRP.
Read more: https://www.tronweekly.com/xrp-set-disrupt-5-trillion-derivatives-market/
Text source: TronWeekly
