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- POC demonstrates euros moving in real time via XRPL and ILP.
- Banks access XRP liquidity indirectly through PSPs.
- XRP may become a settlement layer in regulated European finance.
Europe’s payments sector may be entering a new era. A recent proof-of-concept (POC) shows euros being settled in real time using blockchain technology. By combining the Interledger Protocol (ILP) with the XRP Ledger (XRPL), the system connects regulated banking rails to digital-asset liquidity—offering a practical glimpse of blockchain’s role in mainstream finance.
Bridging Traditional Banking and Blockchain
The POC demonstrates how payment service providers (PSPs) can link bank deposits directly to XRPL settlement without altering the existing SEPA framework. SEPA—the Single Euro Payments Area—includes 36 jurisdictions, from 27 EU countries to the UK, Norway, Switzerland, and microstates.
With over 3,550 institutions participating in SEPA credit transfers as of June 2025, and 2,765 supporting instant payments (SCT Inst), the demo shows that banks could access blockchain settlement indirectly through PSPs. Euros move seamlessly through ILP and settle on XRPL, proving that traditional banking infrastructure and digital assets can coexist.
XRP’s Emerging Role in Liquidity and Settlement
If widely adopted, XRPL could serve as a bridge for digital-asset liquidity across Europe. Banks themselves do not need to hold XRP—they rely on PSPs to handle settlement—making the transition low-risk.
This approach aligns with ISO 20022 messaging standards, already widely used across European banks. By integrating XRP as a settlement layer, the demo highlights blockchain’s potential to complement, rather than replace, conventional finance.
Challenges and Opportunities
SEPA processes tens of billions of transactions annually. Any XRPL overlay must scale to meet this volume while satisfying regulatory, accounting, and operational requirements. Adoption may be gradual, but the POC demonstrates a clear path for blockchain integration in high-volume, regulated environments.
Also Read: Ripple CEO Celebrates as Canary XRP Spot ETF Hits $26M in 30 Minutes
The implications extend beyond Europe. This proof-of-concept could serve as a model for PSP-driven adoption worldwide, positioning XRP as more than a cross-border payment tool—potentially a foundational layer in regulated banking.
The POC shared by ProfessoRipplEffect marks a tangible step toward regulated blockchain adoption in Europe. Euros flowing through ILP and XRPL highlight XRP’s real-world utility and its potential as a bridge between traditional banking and digital-asset liquidity. For PSPs and banks alike, this is a concrete blueprint for the future of payments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
