The European Central Bank (ECB) has confirmed XRP Ledger as the primary blockchain platform for the Axiology Distributed Ledger Technology (DLT) system. Cryptocurrency analyst Diep Sanh first discovered this detail in the ECB Eurosystem report on new technology applications in payment and clearing.
Axiology is one of the Eurosystem's test participants, providing a DLT-based securities transaction and payment infrastructure. This startup was founded by Marius Jurgilas, a former board member of the Lithuanian Bank, and operates under the European Union's DLT experimental regime.
According to the report, 60 stakeholders and 4 central banks participated in two pilot phases. Through these tests, they evaluated 48 usage scenarios across 11 different categories, from bond issuance and payment to deposit call activities.
Axiology and XRP Ledger Technology in the Controlled DLT System
The report clearly states that Axiology is built on XRP Ledger's open-source code, but designed in a private, permissioned form, ensuring independence while leveraging XRPL's technological power.
"Although Axiology applies XRP Ledger technology, it operates as an independent system, with the goal of optimizing transactions, payments, and crypto asset custody, such as financial securities, enhancing security and efficiency."
This system simultaneously integrates transaction, accounting, and clearing functions on the same platform, allowing instant payments through the Delivery Versus Payment (DVP) mechanism.
However, Axiology is subject to much stricter compliance standards and risk management frameworks compared to public blockchains. KYC processes are thoroughly implemented, including the ability to freeze wallets when necessary. Smart contract functions are also limited to minimize security risks.
This platform manages the entire bond lifecycle from issuance, coupon interest payment to maturity and capital repayment, with a sophisticated operation mechanism based on metadata to ensure smooth, highly efficient transactions compared to the traditional bond market.
The Critical Role of XRP Payment in Axiology's Operation
The payment wallet in the system uses XRP Payment to transfer capital, which the ECB evaluates as a key factor in accelerating and optimizing cash flow in bond transactions on the platform. This allows Axiology to interact effectively with central bank money (CeBM) and external payment platforms.
XRP Community and Positive Reaction to the ECB Report
The XRP investor community expressed optimism as the ECB confirmed XRP Ledger's technological role in the future financial system. Diep Sanh noted this as a sign that XRP will continue to lead the cryptocurrency finance sector.
Although Axiology only applies a permissioned version of XRPL, this also signifies strong trust in the network infrastructure, paving the way for enterprise-level product developments in the near future.
However, XRP's price has not seen a breakthrough this year, decreasing by 5.79% since the beginning of the year and losing an additional 6.49% in the past 30 days. This is a common trend among many large-cap cryptocurrencies.
According to data from Santiment, currently 65.1% of XRP's circulating supply is held at a profit, placing XRP in the top three cryptocurrencies with the highest investor profitability, ranking only after Bitcoin and Ethereum.
