The European Central Bank (ECB) has identified the XRP ledger as the underlying blockchain network for the Axiom-Distributed Ledger Technology (DLT) system. Crypto analyst Diep Sahn first noticed this in the ECB Eurosystem Report on the use of emerging technologies in settlements.
One of the projects that took part in the Eurosystem experiment was Axiology, a DLT securities trading and settlement infrastructure. Founded by Marius Yurgiras, a former board member of the Bank of Lithuania, the startup operates under the EU DLT pilot structure.
According to the report, 60 stakeholders and four central banks participated in the exploratory work in two phases. Through experiments and testing, these projects tested 48 use cases in 11 categories, from bond issuance and settlement to margin calls.
Axioms took part in a Category 1 experiment, focusing on the institutional issuance of debt securities and the lifecycle management of such securities, from issuance to redemption to coupon payments.
Axioms harnessing XRP ledger technology for authorized DLT
The report includes a comprehensive explanation of axiom capabilities and its use cases in experiments, indicating that the platform was built using the open source code of XRP ledgers. However, it was designed to be private and allowed, and was made independent while leveraging XRPL.
The report said:
“Although axioms benefit from XRP ledger technology, it acts as a separate system designed to streamline the transaction, settlement and storage of tokenized assets such as financial securities.
As a private and authorized network, axiomatics is reportedly combining transaction, accounting and settlement functions into one infrastructure. This enables instant delivery and payment (DVP) payment capabilities.
However, there may be more compliance standards and risk management frameworks than public blockchains. You need to know the customer (KYC) steps, for example, by checking the identity of an investor or allowing the wallet to be frozen, but its on-chain capabilities are limited to reduce the risks associated with smart contracts.
The report also comprehensively explained how axiomatics in bond lifecycle management works with platform processing issuance, coupon payments, and maturity redemption.
Interestingly, XRP payments play an important role in the process, with the ECB paying attention to the wallets involved in the transaction using XRP payments to move funds. However, most processes rely on instructions contained in the metadata to ensure seamless transactions without the inefficiencies of traditional bond markets.
Meanwhile, this experiment focused primarily on whether axiom infrastructure and solutions could interoperate with central bank money (CEBM) and external payment platforms. This is essential to identify how the platform works in real use cases.
XRP holder is bullish with tokens after ECB report
Many in the XRP community have pointed to the ECB report as a positive indication of the XRP ledger. Diep Sanh said this is evidence that XRP is driving the fiscal future.
Also, while Axiology uses XRPL technology alone, shared optimism, noting that it is a vote of confidence in the network, indicating institutional and permitted use capabilities. XRPL is already planning new features to improve the capabilities of its enterprise-grade products.
However, positive community sentiment wasn’t enough to raise prices this year. XRP has been down 5.79% since the start of the year, losing 6.49% of its value in the last 30 days, continuing its low performance year, like other major cap altcoins.
Still, most XRP investors hold profits, with 65.1% of XRP currently being held in profits, according to Santiment data. This is the top three in terms of the proportion of distribution supply in profits, after Bitcoin and Ethereum.