XRP News Today: ECB Recognizes XRP Ledger as Key to Next-Gen Financial Tools

The European Central Bank (ECB) has recognized the XRP Ledger as a key facilitator in the development of next-generation financial tools. This acknowledgment comes from the ECB's Eurosystem report on the use of emerging technologies for settlements, where the XRP Ledger was identified as the underlying blockchain network for the Axiology distributed ledger technology (DLT) system.

Axiology, a DLT securities trading and settlement infrastructure, participated in the Eurosystem experiment. Founded by a former board member of the Bank of Lithuania, Marius Jurgilas, Axiology operates under the EU DLT Pilot regime. The experiment involved 60 stakeholders and four central banks, testing 48 use cases across eleven categories, including the issuance and settlement of bonds and margin calls.

Axiology focused on the institutional issuance of debt securities and the lifecycle management of such securities, from issuance to coupon payments to redemption. The platform was built using the open-source code of the XRP Ledger but is designed to be private and permissioned, allowing it to operate independently while leveraging the XRPL technology.

The ECB report highlighted that Axiology benefits from XRP Ledger technology, operating as an independent system to streamline trading, settlement, and custody of tokenized assets with enhanced security and efficiency. As a private and permissioned network, Axiology combines trading, accounting, and settlement functions into one infrastructure, enabling instant Delivery Versus Payment (DVP) settlement capabilities. It also adheres to more compliance standards and risk management frameworks than public blockchains, including Know Your Customer (KYC) procedures and the ability to freeze wallets.

The report detailed how Axiology functions in the lifecycle management of a bond, handling issuance, coupon payments, and redemption upon maturity. XRP Payment plays a crucial role in these processes, with the ECB noting that the wallets involved in transactions use XRP Payment to move funds. The experiments also focused on the interoperability of Axiology's infrastructure and solutions with Central Bank Money (CeBM) and external settlement platforms, essential for real-world use cases.

Many in the XRP community view the ECB report as a positive sign for the XRP Ledger, seeing it as evidence that XRP is powering the future of finance. The report is seen as a vote of confidence for the network, showcasing its capacity for institutional and permissioned use. XRPL has planned new features to improve its capacity for enterprise-grade products, further enhancing its potential in the financial sector.