Thread by @ChadSteingraber

How it will work

Banks will run Private #XRP Ledgers, and will issue their own stablecoins on top of it. They will transact their day to day business privately as usual.

At a point (say daily/weekly/monthly) they will settle out to the PUBLIC ledger through liquidity hubs.

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No bank in the world will publicly reveal their transactions / customer accounts to the public.

This is privacy 101, it’s the way it’s always been and will not change due to new technology.

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Once a batch of private transactions are bundled, sent to Liquidity Hub, those bundles will not include ANY customer data, like a stash of blind data with a value.

The Liquidity Hub is a second layer of obscurity where this 3rd Party will trade bundles with other bundles.

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Let me tell right now that in the future, Bank of America WILL have a digital wallet in your regular bank account that CAN hold #XRP

This will NOT be public, you can’t find someone’s banking history with it.

It WILL be private.

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Let’s say you’re a Bank of America client and you’re receiving a direct deposit from your work. In this new world, you get to choose your receiving asset types.

You choose 90% #XRP, 10% Apple Stock.

Those are just as private as they are today with $

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Remember the Moneygram #XRP trials? What did they do?

MG would collect a batch of payments and bundle them up into a single transfer (say $5K worth) then send THAT across the #XRPL then break it back apart into individual recipients.

This was a test.

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Daily, BoA will create/manage/burn “BoA Coin” within their ledgers. When transferring out, a batch of payments (say within the past 5 mins) will be bundled and sent as BoA Coin to a Liquidity Hub.

That Hub will swap BoA Coin-XRP-JPM Coin and batch send that to Chase.

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“A strict duty of confidentiality prohibiting banks from disclosing any information relating to the banking transactions of any of its clients; an explicit and special legal framework for the permissible disclosure of information to third parties by a bank.”

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The Liquidity HUB is bigger than most realize as other large entities will become 3rd party “Institutional Liquidity Providers” (like Polysign). They will custody EVERY type of asset tokenized on the #XRPL

This replaces all Nostro/Vostro globally

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The BoA Digital Wallet - it will hold just about any token/asset. The end goal was always for banks to HOLD #XRP. But, as we’ve seen the issue has been privacy and risk, NOT the tech.

Until now. LHub’s will also settle in and out all tokenized assets to each bank in bulk.

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The biggest criticism #XRP gets is that messaging and settlement can be separated. (“Doesn’t use XRP!”)

This is actually its secret weapon. Only BoA (sender) and Chase (recipient) KNOWS the client data. Message is sent privately, settlement simultaneously.

SEPARATELY U👀?

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In this "Real Time Banking" the #ISO20022 MESSAGE is instant from BOA to Chase for the consumer end while both BoA/Chase debit and credit client accounts as they wait for the "couple of minutes (or less?)" of settlement trips through Liquidity Hubs.

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So far, this whole thread has been just about a normal person opening up their bank app, seeing $'s in their account and sending a payment to another bank. This is the majority of people.

Next step, we get to those who hold digital assets in their bank like #XRP

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In your BoA Digital Wallet, you've selected 100% #XRP as the deposit asset for your direct deposit from work. Your work sends your paycheck in $ from their bank, through LHub and bulk bundles #XRP-sent to BoA.

BoA has multiple IN/OUT XRP POOLS that have no client history.

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This is where it starts getting exciting :)

Those IN/OUT #XRP POOLS are not for clients directly. The CLIENT POOLS are behind WALLED GARDENS that never LEAVE. These POOLS have encrypted tags that constantly change (like Google Auth) which tie to client accounts.

PRIVATE

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You have 150 #XRP in your BoA Digital Wallet - and you spend 5 XRP to buy a car. The encrypted tag is changed from your account to an "unassigned client" group.

The message is sent instantly for payment and the OUT POOL 5 XRP is sent for settlement.

#AI managed POOLS

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The big takeaway here is that BoA MUST HOLD a 1:1 balance of #XRP in their client pools with tags that are tied directly to the accounts. BoA CANNOT say that you have 100 XRP in your account but then BoA only has 10 XRP actually there OR not there at all.

This is NOT cash

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Do you see what is happening here?

--BoA MUST have 1:1 Client #XRP that will only grow over time
--BoA THEN has a variable balance of #XRP for Sending/Receiving
--BoA WILL have a bank owned pool of #XRP FOR INVESTMENT PURPOSES / LOANS, ECT.

This is BoA, now + MORE Banks

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