XRP Huge Upgrade For Institutions ONLY

[00:00:00]Ripple's bringing privacy to the XRP ledger, and guys, this is going to tell us a lot about Ripple's plan with large financial institutions. Guys, in this video, I want to break down a brand new amendment coming to the XRP ledger that's not getting talked about enough, in my opinion, but is likely going to be the unleash for large institutional DeFi all on XRP. Guys, in this video, we're going to break down the whole thing, so make sure to stick around. Like always, your support means so much to this channel. Thank you to everyone who likes and subscribes. With that said, let's jump right into it, and I hope you guys enjoy the content. just going to jump right into it today and talk about a brand new amendment coming to the XRP ledger. I've talked about this before, but one of my favorite things about XRP is the fact that the chain just keeps getting better. The XRP I bought all the way back in 2017 and 2018, it had capabilities associated with the ledger, but guys, the XRP I own today, that same XRP, is completely different because upgrades constantly getting made. It's almost like a company getting stronger and stronger and more capable. But guys, in this case, it's just decentralized code, but in my opinion, it's only going to make XRP vastly more valuable with time. Now guys, one of the things that we are learning is really how the future financial system is going to be made up.

[00:01:15]And what we're seeing is Ripple is consistently bringing features to the XRP ledger to allow the XRP ledger to be the number one choice for large financial institutions.

[00:01:26]Now, what Ripple is bringing forward with XLS-96 is privacy on chain. Now, this should allow private distributions among assets on and off chain. Now, this is extremely interesting because I think it really puts to bed one of the biggest pieces of fud we have consistently seen in the cryptocurrency industry.

[00:01:51]And that huge piece of fud for a very long time was was that financial institutions were never going to use the XRP ledger because they would just use their own private chains. And everyone said that private chains were going to be the killer of public blockchains.

[00:02:08]Now, this is something I have always pushed back on pretty hard simply for my own intuition. And that's because if you look at any single technology, there is almost always private and public versions of that technology. The best case I can think of that's just super simple and straightforward is simply photo sharing. You obviously want certain pictures on your private camera roll. You other want You also want pictures that you're able to share publicly. Private and public databases.

[00:02:37]It's the same for information and it will be the same for value. Now, there is going to be a huge application and I think likely more value application for the public blockchains. But that doesn't mean that private blockchains aren't going to be valuable and also won't be critical. What this new amendment Ripple is bringing forward shows is that this is exactly the world we're heading into.

[00:03:02]By allowing financial institutions to move assets on and off the public XRP ledger through private chains in in a completely completely private way, it allows financial institutions to have the best of both worlds. And guys, this is the exact thing that allowed the internet to really take off.

[00:03:24]I don't think Instagram would have ever worked if there was no private camera roll because everyone would have thought it was absolutely insane to post every single picture they have on their phone directly to the public internet. It simply wouldn't make any sense. The same is true for value. No one is going to want to have their entire bank account and every financial transaction they have ever made on public blockchain network. But does that mean that people won't want to be able to interact with pooled liquidity? Does that mean that people won't want to interact with decentralized neutral settlement? Does that mean people won't want to interact with a public marketplace to exchange value and to be able to lend and borrow different assets? Absolutely not. But those feature sets, the times that people go to take advantage of those specific applications, they're going to have to make a sacrifice on privacy.

[00:04:17]Now, that's already what we do as humans. When I go to post a picture on Instagram, I'm making a sacrifice of privacy, but I'm looking to gain something out of that where maybe privacy isn't my number one concern. And maybe privacy is the opposite of what I want. I want it to actually be public.

[00:04:34]Well, the same will be true with the internet of value. But what Ripple is showing is that this is actually a key driver for financial institutions to step into the ring.

[00:04:44]What we know is so far in crypto, there has been a very interesting path taken by a lot of the privacy network. A lot of the big privacy networks have really just gone for the capability of being able to move money from one person to another in a completely anonymous way.

[00:05:01]But the truth is, is this really only unlocked a lot of things for illicit finance. Because the vast majority of financial institutions aren't so worried about people seeing the movement of money. They're worried about people seeing the back-end treasury operations.

[00:05:16]They're worried about people being able to see what risk positions they have on and off. It's not necessarily just the need to be able to ping back and forth a token like Zcash over and over again.

[00:05:27]It's just not really the capabilities they're looking for. Most financial institutions aren't going to want to deal with a volatile asset. They would much rather deal with the assets they already hold. Which means the capability of holding all their assets on chain in a completely private way, and then being able to make those assets public when it's needed. Now, that idea doesn't seem so novel or concept when you say it out loud. In fact, it seems extremely practical and likely the world we're headed to, where a financial institution can have the vast majority of its assets off chain, but then have a very large amount still being used for public liquidity, for crowdfunding, for sourcing liquidity, for creating yield, for loans, for debt. All of these things are things that financial institutions right now are doing with one-off transaction, one-off relationships. But, the liquidity will build, and the marketplace will drastically expand when everyone can plug into a single public marketplace.

[00:06:29]Rather than JP Morgan having to go to Bank of America, then having to go to Citadel, or any other financial institution, and create one-off, single contract arrangements, they can simply join public liquidity being sourced by every major financial institution in a constant, competitive marketplace, linked to every major financial institution on Earth. This is going to drastically deepen liquidity, and it's going to be so appetizing that financial institutions will need to engage in this market because it's vastly more efficient than anything we have today.

[00:07:06]So guys, it's not that financial institutions are just going to hide in their off-chain environments and never use their assets. It's actually the opposite. They will have applications to keep certain assets private, especially things that are associated with their own balance sheet. But, when it comes to them taking on risk, when it comes to them deploying capital, it is almost certain that is going to happen in a public marketplace. This same exact thing happened for information. And one of my favorite things about Ripple, the company, is that a lot of the players at Ripple, people like David Schwartz, people like Brad Garlinghouse, were critical in the build-out and the advent of the internet. They saw this entire thing play out already, and they understand how these things are built out over time. The internet was not built out by every single person going home and buying a $50,000 computer and coding up their own applications to interact with protocols that were just barely getting off the ground. No, instead what happened was large financial institutions, large institutions in general and corporates made it so that retail could have an easy access point and a touchpoint to a game-changing technology.

[00:08:23]I don't think it's going to be any different in the cryptocurrency world we're heading into. Right now, we're just the enthusiasts. We're the people who just heard about the internet and know it's going to be transformational, but the rest of the world still can't see it. The rest of the world is still questioning why you need Google. The rest of the world is still questioning why you need Amazon. Can't you just go to the store? People are saying, "Oh, well, you don't need to be able to stream things online. We already have the radio." At the time, it just seemed like people were overcomplicating the problem. But the truth is is being able to move information instantaneously anywhere in the world drastically expanded the solution sets that humans were able to offer, deepen the economy, and created a web of information that allowed brand-new applications, brand-new businesses, and a value explosion with a drastic increase in efficiency in how we can communicate worldwide. Well, guys, all of that is going to happen in the internet of value. And this is not something that someone goes to the stores and buys and just instantly understands because they get hands-on. No, the vast majority of people don't know how money moves, the vast majority of people don't know how the financial system works, and the vast majority of people will never be able to understand how cryptocurrency is going to disrupt and replace all of that. But, the truth is, is the same thing was true for the internet. And I believe the same thing is going to be true for the internet of value. What Ripple is building by bringing privacy to the XRP ledger is an architected network for financial institutions to take advantage of to allow that change to take place.

[00:10:02]And guys, I believe we're probably a lot earlier than many people truly understand. That only means the upside is so much greater. Thank you so much for coming. I hope you enjoyed this update. For now, make a loud.