We saw references to this but cannot work out the fiat part, is there a weblink about this?
Hi @trevortlo,
I’m not sure I fully understand the question but an example of fiat on the network today:
Coil sends micropayments in XRP over the network, some of these micropayments go to a wallet supporting USD ILP payouts. Stronghold is running a connector between XRP and USD, so when they receive XRP over the network they exchange the incoming XRP for USD and deposit it into their users’ accounts (they are a custodial wallet).
Let me know if that doesn’t answer your question.
Thanks for these details. We had seen coil and also Stronghold but we were not sure if they were some kind of proprietary systems. We want to integrate a solution into a settlement engine so that a token based market can directly settle into fiat. We do not want to get locked into a provider which is basically offering a service except a major one such as Ripple and ILP. The reason is that we will be dependent on their performance in their systems, them keeping all their own systems up-to-date, and there are numerous issues with customization.
Hence we want something we can directly change and customize, and also not be limited to a third party provider except a major one which we assume will survive market conditions and upgrade when market conditions change.
Any help is welcome because I cannot see currently how the we can settle into fiat money as that needs a fiat based ledger which is in the province of banking.
You’re correct in that it’s essentially necessary to engage with a financial institution in order to settle into fiat. This is because all of the core fiat rails (ACH, Wire, checking, etc.) have KYC and block any institution other than licensed financial entities from engaging with their networks. Because of this, if you’re looking to settle into fiat it’s necessary to engage with a financial institution that has access to these fiat payment networks.
It’s not so much that the Coil / Stronghold solution is proprietary, it’s more that Stronghold is a financial institution with access to fiat networks. Anytime you go from token -> fiat you’ll need a financial institution to provide that gateway because we as individuals will not have access to them.
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Thanks. That confirmed what I thought. But does ILP need def xrp or eth on the ledger, and how exactly can we test the fiat part of ilp? I did already the token to token part but we need to test token to fiat. I assume we can do that without stronghold and just transfer the xrp providing we have xrp in a wallet somewhere.