- Customers of Bitstamp may now use XRP Ledger for EUR transfers.
- An IOU is a token on the XRP Ledger that represents ownership of an underlying asset.
Support for Euro-backed IOUs on the XRP Ledger was recently announced by cryptocurrency exchange Bitstamp. Customers of Bitstamp may now use XRP Ledger for EUR transfers.
Bitstamp tweeted on Twitter about their growing user base, saying:
“We’re expanding our IOU Services on XRPL. You can now use EUR-backed IOUs as your gateway to the XRP Ledger. Dip your toes into DeFi with cost-effective and fast transfers, increased transparency and zero transfer fees on all IOU transfers.”
XRP Ledger to Handle
Bitstamp has announced on its blog that all IOU transfers will incur no fees. This would be between January 26 and March 27, 2023. The XRP Ledger employs a distributed consensus ledger that is validated by a network of validating servers. Although it has its own token, the XRP Ledger also supports the inclusion of other tokens backed by assets, called IOUs.
Bitstamp produces three asset-backed IOUs that may be used as entry and exit points on the XRP Ledger. These are bitcoin (BTC), US dollars (USD), and Euros (EUR). An IOU is a token on the XRP Ledger that represents ownership of an underlying asset, such as US dollars, Euros, gold, or oil.
Because the XRP Ledger operates as a distributed network, transactions often go swiftly over the network without the need for numerous block confirmations. Bitstamp does not store any IOU tokens; instead, the XRP Ledger handles all of it.
Bitstamp claims that the IOUs it issues are backed by the same rigorous system of internal controls and frequent external audits that protect the legitimacy of its operations and its cryptocurrency offering.
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