Stochastic Dynamics of Ripple XRP for Cross-Border Settlement Optimization
Fuente:
arXiv
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| Autore principale: | |
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| Natura: | Preprint |
| Pubblicazione: |
2025
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| _version_ | 1866911058755584000 |
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| author | Firouzi, Kiarash |
| author_facet | Firouzi, Kiarash |
| contents | The feasibility of XRP as a liquidity medium in cross-border transactions is assessed in this paper using a thorough stochastic framework. We use simulations of settlement latency, regime-switching volatility, and jump-diffusion models. The models are calibrated using historical data from public exchanges and RippleNet corridors, and they assess FX dynamics, liquidity depth, and tail risks in real-world scenarios. The behavior of XRP differs significantly from the conventional GBM assumptions, according to the results, and stochastic volatility with regime awareness provides a reliable path to corridor optimization. Our empirical validation shows that adding volatility feedback and routing adjustments significantly increases remittance success rates. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2507_11553 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Stochastic Dynamics of Ripple XRP for Cross-Border Settlement Optimization Firouzi, Kiarash Physics and Society Probability 91G60, 60H30, 62P05 The feasibility of XRP as a liquidity medium in cross-border transactions is assessed in this paper using a thorough stochastic framework. We use simulations of settlement latency, regime-switching volatility, and jump-diffusion models. The models are calibrated using historical data from public exchanges and RippleNet corridors, and they assess FX dynamics, liquidity depth, and tail risks in real-world scenarios. The behavior of XRP differs significantly from the conventional GBM assumptions, according to the results, and stochastic volatility with regime awareness provides a reliable path to corridor optimization. Our empirical validation shows that adding volatility feedback and routing adjustments significantly increases remittance success rates. |
| title | Stochastic Dynamics of Ripple XRP for Cross-Border Settlement Optimization |
| topic | Physics and Society Probability 91G60, 60H30, 62P05 |
| url | https://arxiv.org/abs/2507.11553 |