Transforming

Global Payments
Enabling the Internet of Value

1
O U R V I S I O N

The Internet of Value:

Enable the world to move money
like information moves today.

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Overview of Ripple’s solutions
Ripple Offers Two Software Solutions

xCurrent LIVE TODAY

Connectivity Solution
Coordinates transactions across ledgers
Bi-directional messaging + real-time settlement

xRapid LIVE TODAY

Liquidity Solution
Leverage a digital asset for reach to new corridors
Enables global reach without pre-funding overseas
PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. 4
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved.
xCurrent LIVE TODAY

Connectivity Solution
Coordinates transactions across ledgers
Bi-directional messaging + real-time settlement

5
Legacy Connectivity: Sequential Process Creates Problems

Step 1 Step 2 Step 3

Originating Sending Receiving Beneficiary

Bank Correspondent Correspondent Bank

One-Way Messaging, Unlinked From Settlement Instructions

Delays Relay process can cause 2-4 day delays, unpredictable

Risk No payment tracking or status information available
Uncertainty Fees and total cost unknown to the sender
6
Ripple: Coordinated Process Enables New Benefits

Originating Beneficiary
Bank Bank

Bi-Directional Messaging With Settlement Instructions

Speed Payments settle real-time, instead of 2-4 days

Transparency End-to-end tracking and status of the payment
Certainty Total cost and message details confirmed before initiation
Lower Cost Reduce failed payments and costly intervention for error resolution
7
Key Functions

Bi-Directional Messaging & Tracking

ISO 20022 Format + Expandable Contextual Field

Real-time Settlement Instructions

Capable of running 24/7/365

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 8
RippleNet: Specialized for Interbank Payments

RippleNet
● Network of financial institutions

● Underpinned by Interledger -
connects & coordinates ledgers

● Banks maintain their own ledgers,

enabling scalability and data privacy

● Leverages cryptography and

encryption from blockchain technology

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 9
 RippleNet Advisory Board & Rulebook

● Governance Advisory Board

● Developed Commercial Framework, Rules, Standards

● Members:

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 10
Case Studies
 Japan | Thailand
Remittance Service
+2X volume growth
month-over-month Siam Commercial Bank (SCB) deployed the
solution to offer faster payments while
lowering internal processing costs.

By enhancing their customer experience,

SCB was able to increase their volumes and
acquire new customers.
Santander

Santander faced pressure from non-

bank competitors taking their share
of international payment volumes.
One Pay FX is a consumer
payments application that allows
money to be sent from U.K. to U.S.
and in the E.U.

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 A Snapshot of Our Customers

… and a consortium of +60 Japanese banks

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 14
xRapid LIVE TODAY

Liquidity Solution
Leverages a digital asset to enable fast payment reach
without pre-funding in the destination country

15
Reducing Payment Friction

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The Past: Reach Through Pre-Funded Relationships

USD

EUR MEX
• Costs to open and maintain accounts

• Ongoing compliance overhead

PHP MYR

• Opportunity costs (trapped capital)

• Payment reach limited to high-volume corridors

YEN CNY
PLZ

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 17
The Future: Expanding Reach Using a Digital Asset

USD

EUR MEX
• Focus: Creates liquidity between
hard-to-reach currency pairs
PHP MYR
• Enables fast, low-cost payments
Digital Asset
• Eliminates need to pre-fund in
destination countries

YEN CNY • Connects fiat currencies more efficiently

PLZ

PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No impli ed licenses are intended and all rights are reserved. 18
 Use Case: Bridging Fiats to Solve for Liquidity

USA MEXICO
Ripple
Originating Beneficiary
xRapid FI EXCHANGES FIAT FOR XRP
FI FI 1
Via a local exchange.
FI does not have to hold XRP.

2 XRP TRANSFERRED
Between digital asset exchanges.

XRP EXCHANGED FOR LOCAL FIAT

3 Distributed directly to the FI’s account
Exchange Exchange
USD/XRP XRP/MXN or disbursed over local rail.

XRP/XRP
 Example Production xRapid Payment Flow

USD-Sender MXN-Recipient

1 Quote USD->MXN USD USD/XRP XRP Sent XRP/MXN MXN

2 Send USD->MXN
payment XRP exposure time = ~90 seconds

Total Transaction time = ~2 minutes

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Ripple Infrastructure Innovation
Opportunities & Engagement Model for Pacific Island Nations
 Regulatory and Policy Engagement
Ongoing Engagement with 40+
Regulators

Bank of England: Accelerator Program Federal Reserve: Faster Payments

Ripple selected to inform the next generation of Ripple was selected to serve on the Steering
RTGS payment infrastructure Committee of this industry strategic initiative.

Saudi Arabian Monetary Authority

International Monetary Fund
Infrastructure innovation partnership for financial
Ripple was selected to serve on the IMF’s High
institutions to leverage Ripple for cross-border
Level Advisory Group on Fintech.
payments
 GLOBAL PAYMENTS
Consortium approach to
connect into regional, global
corridors for cross-border
payments..

Ripple: Platform
for Innovation NATIONAL PAYMENTS
Domestic Immediate Payments
PLUS Cross-Border Platform;
Central Banks and national Infrastructures
Network interoperability.
can engage with Ripple to innovate with
proven building blocks in Distributed
Ledger Technology. Preserve sovereign
rights while transacting seamlessly with DIGITAL ASSETS
Bridge fiat currencies using
regional economies for global growth.
digital assets.
xCurrent Global Payments on RippleNet

Peer-to-peer Cross-Border
Payments

Bi-directional messaging enables

transparency, risk assessment,
reduced errors

Atomic transaction across multiple

ILP Ledgers guarantees certainty of
settlement
xCurrent Global Payments on RippleNet

‘Multi-hop’ to leverage Regional or

intermediaries for liquidity Correspondent
Bank

Bi-directional messaging enables

transparency, risk assessment,
reduced errors

Atomic transaction across multiple

ILP Ledgers guarantees certainty of
settlement
xCurrent Global Payments on RippleNet

Global Distributed Network

Bi-directional messaging enables

transparency, risk assessment,
reduced errors

Atomic transaction across multiple

ILP Ledgers guarantees certainty of
settlement

Variety of use cases (retail, trade),

fiat/digital asset liquidity models
supported

Governed via Rulebook and

RippleNet Inc.
xCurrent Central Banks Create Regional Networks

Sovereignty with
Interoperability
Central Central
CBs can offer liquidity when Bank Bank
constrained via commercial banks

Smaller banks can leverage CB

reserves to conduct cross-border RippleNet
transactions

All legs are ‘atomic’ for certainty of

settlement, 24x7 in real-time for all Domestic Network Domestic Network
use cases

Interoperability via ILP can connect

existing networks as well
 Atomic Settlements via Central Banks
Real-time, 24x7 Payments with Local Currency Settlement via Central Banks

Trusts
Trusts (holds deposit with)
(holds deposit with)

Ripple ledgers reflect

Tala and Fji$ balances
Fiji CB and Samoa CB
held with each other. UAE Commercial Bank
KSA Commercial Bank Each payment debits (Customer’s Bank)
(Customer’s Bank) and credits these
balances in real-time.
Importer pays in Tala. Exporter’s bank pays
Importer’s bank pays exporter in Fiji$.
Samoa CB.

Central Bank of KSA (SAMA) Trusts Central Bank of UAE (CBUAE)

(holds deposit with)
Samoa CB pays Fiji CB in Fiji CB converts Tala to Fiji$.
Tala at Fiji CB account held Fiji CB pays Fiji$ to exporters’
at Samoa CB. bank in Fiji.
 Consult
1
Draft brief and review with selected
banks, partners to finalise, seek budget
and resource approvals.

Mobilise
2
Kick off ‘Deep Dive’ to educate, engage all
stakeholders, detail workstreams and
project plan.

Conduct Program
3
Trial agreed use cases (domestic, cross-
border), test proof points (speed,
security, integrity, client value).