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XRP (XRP) and Stellar (XLM) are both targeted at the finance industry, specifically the cross-border payments market. But the big question for most investors is, which one of the two will emerge tops in this market? Well, while hardcore holders of both have their reasons to believe that their favorite coin will emerge on top, no one can say with certainty that they know the winner. That’s why it makes sense to hold both, as a safeguard measure. To make things clearer for you, let’s go through a few fundamental reasons why holding both is a sound strategy.

  1. It’s still early days in terms of adoption

There is no doubt that blockchain technology will disrupt the cross-border payments market. However, most financial institutions are still in the testing phase of this technology. XRP, through ripple, seems to have an edge in terms of adoption, but XLM too has a major strategic partnership with IBM, a big player in the banking industry.

The IBM-Stellar partnership gives it a good chance at adoption as a tool for cross-border payments. For instance, HSBC is testing a payments platform, using a “very young technology”, most likely blockchain. While they have not yet announced which platform they are working with, there is a good possibility that it could be stellar. That’s because, like most other banks, it has a tech partnership with IBM, a key stellar partner. This goes to show that none of the two cryptos is yet to emerge dominant in this market. As such, it is best to hold both, instead of speculating that one of them will emerge dominant, unless you are an insider who is fully in the know, on which technology banks are adopting.

  1. Both have a good future due to their diverse use-cases

Holding both XLM and XRP doesn’t mean that one will lose out, if the other wins the banking sector. That’s because the two also happen to have a diverse use-case outside of the cross-border payments market. For instance, XRP is gaining usage as a base currency for exchanges. On its part, the stellar blockchain is emerging as the blockchain platform that will pave the way for asset tokenization. These are use cases that guarantee the long-term growth of these two blockchain projects in the future. It is a win-win situation for investors who get into both projects.

  1. It’s always good to diversify

In the financial markets, it never hurts to spread your risks.  Even the most successful investors thrive on diversifying their investments. Holding both Stellar and ripple can cushion you in times of market volatility. For instance, in the last one month, any investor who was holding both would have been cushioned from the price drop of XRP, by the gains that XLM has made in the same period.


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