In a report on the monetization of stable currencies and assets, the International Monetary Fund (IMF) noted that some financial institutions did not choose only private books, but began to issue regulated digital assets on the public sector block chain. The report listed the XRP Ledger as one of the relevant infrastructure, indicating that the public chain was gaining more access to the actual deployment of traditional financial institutions.
The report mentions that banks issue currency in the public chain.
In its report, the IMF indicated that a number of institutions chose the unlicensed block chain, primarily looking at greater interoperability and wider market access. Public chains are easier to connect to existing digital asset markets than closed books and to move assets between different platforms.
One of the cases cited in the report is the EuroStabilization EUR CoinVerteble (EURCV), which was introduced by Banque France. The stabilization currency has been deployed in XRP Ledger and also covers the Ether, Solana and Stellar.
The use of this case as a realistic example of the use of public-chain infrastructure by traditional financial institutions suggests that regulated digital assets are not necessarily limited to the built-up or union-chain environment.
Currencyization as an important trend in financial markets
The report also identified asset monetization as one of the important trends in reshaping the global financial system. The core approach is to convert currencies, bonds, equities and other financial instruments into chain-based coins to increase the efficiency of current flows.
- Reduction in time for transfer and settlement of assets
- Reducing operating costs and dependence on intermediaries
- Improving transparency of transactions and market liquidity
At the same time, the report mentions that monetization also helps to reduce settlement risk and expand the availability of financial services. This means that the relevant applications go beyond technical experiments and are moving towards more specific financial product scenarios.
XRP Ledger enters into institutional infrastructure discussions
The presentation of this report also echoes previous public views of the IMF Senior Economist Itai Agur. Agur had indicated that monetization and programmable currencies could be the next stage in the evolution of financial markets.
Along these lines, when a programmable currency is combined with a monetized asset, a partial process can be implemented automatically through an intelligent contract, thereby increasing the speed of transactions, reducing costs and reducing reliance on traditional intermediaries.
In this report, XRP Ledger was added to the list of relevant public links, along with Ether, Solana and Stellar. For the market, this shows the bottom-up web selection of regulated financial products, which is gradually expanding from closed systems to more open block-chain infrastructure.
As banks continue to advance the deployment of stable currency and monetized assets, the public chain that allows for the issuance of compliance digital assets is receiving more institutional attention.