Ripple highlights the possibility of accessing the Fed master account… XRP reexamined as 'payment infrastructure'

Source: TokenPost Original Title: Ripple Highlights Possibility of Access to Fed Master Account…Reevaluating XRP as ‘Payment Infrastructure’ Original Link: Ripple(Ripple) is once again drawing attention to the possibility of accessing the U.S. Federal Reserve(Fed)'s ‘master account(master account)’. The so-called master account is an account directly connected to the Fed’s payment system, and if a cryptocurrency company secures it, it connects directly to the central bank’s financial infrastructure without going through traditional banks. XRP supporters are reexamining Ripple and XRP’s long-term standing around this scenario.

Ripple, Direct Connection to Fed Payment Network?

If Ripple can access the Fed master account, it would be directly linked to the U.S. core payment system, allowing participation in transaction flows without bank intermediaries. This represents a significant opportunity for Ripple to compete with traditional finance in the global payment market.

In particular, Ripple has built an infrastructure using XRP that features low transfer costs and high speed. Thanks to XRP Ledger, which supports ultra-fast payments in seconds and over 1,500 transactions per second, a direct connection to the master account could enable payment competitiveness comparable to large financial institutions.

Strengthening Institutional Finance Entry with ‘Ripple Prime’

In this context, Ripple recently acquired an institutional brokerage called ‘Hidden Road(Hidden Road)’ and launched a new entity called ‘Ripple Prime(Ripple Prime)’. The structure, which is linked to the U.S. depository and clearing organization(DTCC), has attracted attention as a potential new pathway for Ripple to participate directly in the infrastructure handling approximately $4 quadrillion(about 5,786 trillion won) worth of global stock, bond, and derivatives settlements annually.

Ripple’s institutional access via Hidden Road could expand beyond payments to clearing, liquidity provision, and more. XRP is expected to evolve beyond a simple cryptocurrency into an ‘infrastructure’ role.

XRP as a ‘Foundational Technology’ Rather Than a Speculative Asset

Another area Ripple is expanding into is ‘stablecoin’ payments. Ripple is believed to have built a payment rail that handles about 10% of global stablecoin transaction volume. This indicates XRP is functioning as a ‘base layer’ within the digital asset ecosystem.

Analysts suggest XRP is positioning itself not just as a speculative market asset but as a key technological component for global payments and financial connectivity. Especially in cross-border remittances and inter-institutional system connections, XRP could serve as a ‘bridge(bridge)’, with high scalability blockchain technology likely to be adopted.

Nearing the Realization of a 10-Year-Prepared Vision

The XRP Ledger is designed to handle over 1,500 transactions per second, with an average settlement time of 3-5 seconds, making it suitable for large-scale fund transfers. This discussion is part of a strategy that has been in preparation for over ten years, not just market hype. Ripple has actively sought entry into major national payment markets through collaborations with financial and regulatory institutions.

If access to the master account becomes a reality, Ripple could partially replace traditional banking by settling and clearing transactions across the global financial market via blockchain. The potential for XRP to become a ‘core’ technology of the global financial infrastructure is gaining weight.

Market Interpretation

Ripple’s pursuit of access to the Fed master account indicates that the cryptocurrency industry is approaching a level where it can compete with or complement existing central bank infrastructure. XRP has already demonstrated competitiveness in payment speed and scalability, and its expansion into stablecoins and institutional finance is broadening its practical use cases.

Strategic Points

Viewing XRP not just as an investment asset but as a payment infrastructure technology allows for a more accurate assessment of its long-term growth potential. Especially, Ripple Prime and DTCC connections are strategic moves for Ripple to deeply integrate with the existing financial system. As this structure materializes, XRP could shift from price volatility focus to usability-centered value.

Terminology

• Fed Master Account(FED Master Account): An account that provides direct access to the U.S. Federal Reserve’s payment system, held by a limited number of financial institutions within the U.S.
• DTCC: The Depository Trust & Clearing Corporation in the U.S., handling the largest volume of financial transactions worldwide.
• Ripple Prime(Ripple Prime): Ripple’s prime brokerage service for institutional transactions. It was rebranded after acquiring Hidden Road.