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arXiv · 2507.11553

Stochastic Dynamics of Ripple XRP for Cross-Border Settlement Optimization

Kiarash Firouzi
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Abstract

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.

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Kiarash Firouzi. 2025-07-13. Stochastic Dynamics of Ripple XRP for Cross-Border Settlement Optimization. https://arxiv.org/abs/2507.11553

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