โถ Coinbase Website: Coinbase.com
โถ CEX Website: cex.io
Venmo and PayPal just connected to each other. Big news, right? Except it’s not really full interoperability. You’re still dealing with the old banking rails underneath.
Here’s what’s actually happening. When you send money between these apps, it still goes through traditional banking infrastructure. That means settlement times, pre-funding requirements, and fees baked into the system. They’ve made the user interface feel instant, but the backend is still waiting on banks.
Blockchain settlement fixes this. XRP specifically, because it settles in 3-5 seconds. Not “feels instant but actually takes two days.” Actually instant.
The pre-funding problem is huge for these companies. Right now they have to park massive amounts of capital in accounts around the world just to make transfers work. Money sitting there doing nothing except waiting to facilitate transactions. That’s expensive.
With XRP bridging currencies, you don’t need pre-funded accounts. The transfer and the settlement happen at the same time. Payment apps could offer truly instant international transfers without tying up billions in nostro accounts.
Free transfers become possible when you’re not paying banks for settlement and you’re not locking up capital. The cost structure completely changes.
Venmo and PayPal connecting is a step. Full interoperability across all payment apps and borders needs blockchain settlement to actually work the way people think it already works.
โถ Coinbase Website: Coinbase.com
โถ CEX Website: cex.io
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