**Banks Racing to Launch Stablecoins Amid Global Finance Fragmentation: Why XRP Matters**
*Written by Lele Jima | Follow TheCryptoBasic*
Prominent crypto pundit Paul Barron recently shed light on the growing fragmentation in global finance and revealed the underlying motive behind the existence of XRP.
In a recent post on X, Barron, host of the Paul Barron Network (PBN), highlighted that major banks are currently racing to launch their own stablecoins.
### Banks Pursuing Separate Stablecoin Initiatives
Barron pointed out that leading financial institutions in the United States—including JPMorgan, Bank of America, Citigroup, and Wells Fargo—are collaboratively working to develop a U.S. consortium stablecoin.
Similarly, European financial giants such as Deutsche Bank, ING, and UniCredit are planning to launch a euro-denominated stablecoin by 2026.
He also referenced a recent statement from Bank of America CEO Brian Moynihan, who confirmed that the bank is preparing to launch its own stablecoin as soon as relevant regulations permit.
### The Challenge of Fragmentation
While these initiatives mark progress, Barron warns of a significant challenge: fragmentation.
He emphasized that financial institutions appear focused on maintaining control through proprietary systems rather than fostering shared, neutral infrastructure. Barron questioned how these isolated financial “walled gardens” will eventually interconnect to achieve true interoperability.
### Why XRP Exists
Interestingly, Barron asserted that XRP was created to address precisely this problem.
Designed for fast and low-cost cross-border settlements, XRP serves as the interoperability layer connecting these disparate financial ecosystems. Its neutral position—unowned by any government or institution—allows financial institutions to use it as a bridge for cross-border transactions without requiring pre-funded accounts, thus freeing up liquidity.
Although Ripple CEO Brad Garlinghouse joined Ripple in 2015, three years after XRP’s launch, Barron suggested that Garlinghouse likely anticipated the growing trend of banks pursuing control through their own systems. This fragmentation, he noted, could increase global demand for a neutral, interoperable asset like XRP.
Rather than competing with bank-issued digital currencies, Barron believes XRP’s true purpose is to connect them all.
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**Disclaimer:** This content is informational and should not be considered financial advice. The views expressed are the author’s opinions and do not reflect those of The Crypto Basic. Readers should conduct thorough research before making investment decisions. The Crypto Basic is not responsible for any financial losses.
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### About the Author
**Lele Jima** is a cryptocurrency enthusiast and journalist dedicated to educating the public about how this emerging asset class is transforming the world. Outside of crypto, Jima enjoys sports and music.
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https://thecryptobasic.com/2025/11/08/top-expert-breaks-down-the-real-reason-xrp-exists/
