Weiss Ratings, an independent rating firm for stocks, mutual funds, cryptocurrencies, ETFs and financial institutions, stated last week that it believes Ripple’s XRP is the fastest cryptocurrency for transferring funds between exchanges, and the ideal base currency for Binance, the world’s most popular exchange.
We think that the #XRP is the fastest digital asset to transfer funds between exchanges. It only makes sense for #Binance to use it as the base #currency – why should one have to go through an intermediary currency to trade? #crypto #btc #altcoins
— Weiss Ratings (@WeissRatings) August 10, 2018
If Binance were to make the change, it would not be the first exchange to adopt the XRP standard. AlphaPoint, a financial technology company that helps companies access the blockchain and make illiquid assets liquid, announced earlier this month that it has powered the launch of DCEX, a next-generation digital currency exchange for retail and institutional investors that is the first exchange to have XRP as its exclusive base currency.
AlphaPoint notes that XRP’s protocol enabled them to develop an exchange with strong liquidity and fast execution times for high-frequency trading that supports arbitrage among currency pairs on different exchanges.
Non-exchange financial firms have also begun using XRP. Arrington XRP Capital, an XRP-denominated crypto hedge fund led by prominent tech figure Michael Arrington, sees XRP as a stable alternative to the many other volatile digital currencies, making it the ideal denominator for a hedge fund.
However, it is interesting to note that XRP only makes up 3-4% of Arrington’s $100 million portfolio. Instead, the firm’s major holdings are in Bitcoin and Ethereum (ETH).
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.