Group 1 - Most investors do not seek the thrill of risk in cryptoassets, yet many experience it unintentionally, especially with mainstream cryptocurrencies like XRP and Cardano [1] - XRP is a fintech platform designed by Ripple for cheaper and faster cross-border money transfers compared to legacy systems like SWIFT, routing both stablecoins and XRP [3][4] - XRP has a market cap of approximately $120 billion, indicating a large-cap status and a significant holder base, although it is not immune to market downturns [4] Group 2 - Ripple has expanded XRP's economic base to enhance its appeal for financial institutions, launching a U.S. dollar stablecoin in late 2024 with a market cap exceeding $1 billion [5] - The stablecoin is integrated into Ripple Payments for cross-border settlements, allowing institutions to streamline treasury operations [6] - Despite its institutional focus, XRP faces risks from crypto market cycles, potential policy changes, and competition from other fintech platforms [7] Group 3 - Cardano aims to establish itself as a new web-based transaction settlement layer, contrasting with XRP's focus on bank adoption [9] - Cardano is a general-purpose smart contract chain but lags in decentralized finance (DeFi) activity and app ecosystem compared to leading chains [10]

Core Insights - Stablecoins are becoming a significant financial innovation, with a market dominated by USDT ($175 billion) and USDC ($75 billion) [1] - The cross-border and remittance use case for stablecoins shows the most growth potential, as USD-denominated stablecoins are replacing SWIFT for smaller transactions [1][2] Group 1: Market Dynamics - Stablecoins currently account for less than 1% of global money flows, but they are emerging as faster and cheaper alternatives in remittances, B2B payments, and e-commerce [3] - The traditional SWIFT system is being disrupted as USD stablecoins serve as the new transmission rail for dollar transfers, providing programmability and 24/7 availability [2] Group 2: Challenges and Solutions - A mismatch exists between the digital world of USD stablecoins and the local fiat economy, creating friction for liquidity providers who must bridge these two states of money [5] - FX-on-chain protocols aim to resolve this issue by enabling direct swaps between USD stablecoins and local-currency stablecoins, collapsing the two-state problem into a single digital state [6] Group 3: Advantages of FX-on-chain - The implementation of FX-on-chain provides key advantages such as hedging in high-inflation economies and enhancing cross-border payments and remittances [7] - Instant conversion allows USDC/USDT holders to sell directly into local stablecoins, which can be redeemed for fiat instantly [9] - Flow matching enables real-time netting of global remittance flows and corporate flows, recycling liquidity continuously [9]