A Ripple director has confirmed that the payments company, like the Bank for International Settlements (BIS), is exploring opportunities to tap the $7.5 trillion-a-day FTX market.
This disclosure was made by Joe Vollono, Ripple’s Director of CBDC Business Development, in an online meeting. During the session, panelists discussed BIS's Mariana project in more detail. The BIS was launched Project Mariana aims to imagine how foreign exchange trading and settlement could develop in a tokenized world.
In a clip announcing the project, the Bank for International Settlements said that the largest financial market in the world is the foreign exchange market. This market records a daily trading volume of $7.5 trillion.
With Project Mariana, the BIS believes that the prospect of a tokenized financial system that will revolutionize current markets is imminent. In particular, the project is a joint venture with the central banks of France, Singapore and Switzerland.
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Ripple director confirms exploration of Ripple
Commenting on Project Mariana, Ripple Director Joe Vollono noted that it is a fascinating initiative that Ripple is currently looking into. In his words:
“Project Mariana is a fascinating work that is being explored in parallel by Ripple.” Prominent XRP community personality Crypto Eri shared the excerpt from Vollono’s remark on X.
👀BIS project MARIANA
To trade and transact the daily 7.5T foreign exchange market
Here we have @Ripple “in parallel” exploring the use of AMM and liquidity pools to resolve cross-border transactions in various currencies.
For the full video:
📺👉https://t.co/g2yhs5DOMS pic.twitter.com/U40OdDKUgO
– 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) December 12, 2023
Additionally, the Ripple director confirmed that the exploration includes facilitating cross-border and cross-currency transactions using an automated market maker (AMM). In addition, he emphasized that liquidity pools play a crucial role in the effective functioning of the models proposed in Project Mariana.
Project Mariana Proof of Concept completed
A few weeks ago, the BIS announced the successful completion of the test. According to the disclosure, the project focused on testing cross-border trading and settlement of “wholesale central bank digital currencies (wCBDCs)” between financial institutions.
For this purpose, it used the DeFi technology concept of public blockchain. According to the report, Project Mariana’s PoC validated cross-border trading and settlement of simulated wholesale central bank digital currencies.
The wCBDCs were denominated in hypothetical euros, Singapore dollars and Swiss francs at simulated financial institutions.
The process depended on three key components in particular. The first was to leverage a common technical token standard that a public blockchain provides to improve exchange and interoperability between different currencies.
Second, the process relied on the implementation of bridges to ensure smooth transfer of wCBDCs between different networks.
Thirdly, it comes to the integration of an AMM, a specialized decentralized exchange designed for the automatic execution and settlement of spot foreign exchange trades.
XRPL AMM
Notably, the XRP community expects an AMM for the XRP Ledger to be enforced through the XLS-30D amendment. The adoption of AMM depends on reaching consensus among validators who have not yet reached the required threshold, and voting is still ongoing.
Recall that Ripple announced the integration of XRPL DEX into its Ripple payment solution.
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Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed in this article may contain the personal opinion of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic assumes no liability for any financial losses.
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