The cryptocurrency market has been abuzz with news about big banks adopting XRP and investing in the token. However, a closer look at the recent partnerships between Ripple and major financial institutions reveals that most of these deals do not involve buying XRP.
According to regulatory filings, Goldman Sachs sold its entire $153.8 million XRP ETF position by March 31, while Morgan Stanley bought a relatively small amount worth around $15,488 in two ETFs. The largest disclosed institutional buyers held combined positions of nearly three-quarters of what the 30 largest disclosed institutional buyers held.
Ripple's partnerships with banks like Deutsche Bank and Société Générale involve using Ripple's software stack for cross-border payments, foreign exchange, and digital asset custody, but do not require buying XRP. The one product that genuinely consumes XRP is On-Demand Liquidity, which uses the token to bridge currency pairs in cross-border payments.
However, SBI Shinsei Bank has launched a pilot that gives depositors vouchers worth 20% of their interest payments, redeemable for XRP through SBI VC Trade. This pilot covers over 4.3 million accounts and is seen as a significant development in the adoption of XRP by major banks.