A Ripple director has confirmed that the payment firm, like the Bank for International Settlements (BIS), is exploring ways to tap into the $7.5 trillion daily FTX market.
This disclosure came via Joe Vollono, Ripple’s director for CBDC Business Development, in an online meeting. During the session, the discussants elaborated on BIS’s Project Mariana. The BIS launched Project Mariana to envision how trading and settling FX could evolve in a tokenized world.
In a clip announcing the project, the Bank for International Settlements stated that the largest financial market globally is the foreign exchange market. This market experiences a daily trade volume of $7.5 trillion.
With Project Mariana, the BIS believes the prospect of a tokenized financial system to revolutionize current markets is imminent. Notably, the project is a joint venture with the central banks of France, Singapore, and Switzerland.
Ripple Director Confirms Ripple’s Exploration
Commenting on Project Mariana, Ripple director Joe Vollono remarked that it is a captivating initiative that Ripple is currently delving into. In his words:
“Project Mariana is a fascinating body of work, and it’s something Ripple, in parallel, is exploring.” Prominent XRP community figure Crypto Eri shared the snippet of Vollono’s remark on X.
?BIS Project MARIANA
To Trade & Settle 7.5T Daily FX Market
Here we have @Ripple "in parallel" exploring using the AMM and Pools of Liquidity to solve cross-border, cross-currency transactions.
For Full Video:
??https://t.co/g2yhs5DOMS pic.twitter.com/U40OdDKUgO— ?Crypto Eri ?Carpe Diem (@sentosumosaba) December 12, 2023
Furthermore, the Ripple director affirmed that the exploration involves facilitating cross-border, cross-currency transactions utilizing an automated market maker (AMM). Additionally, he stressed that liquidity pools play a crucial role in the effective functioning of the models proposed in Project Mariana.
Project Mariana Proof of Concept Done
A few weeks ago, the BIS announced a successful conclusion of the test. Per the disclosure, the project focused on testing the cross-border trading and settlement of “wholesale central bank digital currencies (wCBDCs)” among financial institutions.
For this purpose, it employed the public blockchain’s DeFi technology concept. According to the report, the PoC of Project Mariana validated the cross-border trading and settlement of simulated wholesale central bank digital currencies.
The wCBDCs were denominated in hypothetical euros, Singapore dollars, and Swiss francs, among simulated financial institutions.
Notably, the process hinged on three key components. The first was utilizing a shared technical token standard a public blockchain offers to enhance exchange and interoperability among diverse currencies.
Secondly, the process relied on implementing bridges to ensure a smooth transfer of wCBDCs between various networks.
Thirdly, it hinges on integrating an AMM, a specialized decentralized exchange designed to execute and settle spot FX trades automatically.
XRPL AMM
Notably, the XRP community awaits an AMM on the XRP Ledger, pushed through the XLS-30D Amendment. The AMM launch is pending the consensus of validators, which has yet to meet the required threshold, with ongoing voting.
Recall that Ripple has disclosed incorporating XRPL DEX into its Ripple Payments solution.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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