Pharma Gets a Dose of Blockchain: Wellgistics Adopts XRP Ledger

Wellgistics Health Inc., a Nasdaq-listed pharmaceutical distributor (WGRX), is rolling out a payment system based on the XRP Ledger (XRPL) for pharmacies across the US. This move signals a significant step in applying blockchain technology to revolutionize healthcare finance.

The new platform is designed to allow independent pharmacies to instantly pay for drug inventory, bypassing the traditional delays and high fees associated with banking and credit cards. The system is integrated with RxERP, a serialized pharmaceutical e-commerce and enterprise resource planning system.

Key Benefits for Pharmacies

• Real-time Tracking: Enhanced visibility of transactions.
• Reduced Costs: Lower transaction fees compared to traditional methods.
• Direct Settlement: Eliminates intermediaries for faster payments.

Pharmacies can now participate in the beta version of the program.

XRP Ledger: The Backbone of the System

The system leverages the XRP Ledger (XRPL), an open-source blockchain known for its speed and efficiency, with core development led by Ripple Labs.

With an extensive network of over 6,500 pharmacies and 200 manufacturers, Wellgistics is a pioneer in deploying an XRPL-based payment solution at scale within the healthcare sector. According to CEO Brian Norton, pharmacy owners are demonstrating a keen interest in blockchain technology.

While details on whether pharmacies will directly hold XRP or utilize fiat-to-XRP conversions remain undisclosed, the platform is designed to meet stringent compliance standards, including HIPAA and anti-money laundering regulations.

Future Expansion

Wellgistics plans to extend the platform to include manufacturers and explore direct-to-patient programs, facilitating medication shipments directly from manufacturers to patients under physician supervision.

This initiative builds on a prior announcement where Wellgistics expressed its intention to hold XRP as a treasury reserve asset, backed by a $50 million equity line of credit.

Wellgistics' Market Performance

Despite a challenging market debut, with shares down more than 80% since its IPO, Wellgistics is aiming to position itself as a key player in the blockchain space by integrating pharmacy payments with the XRP Ledger and holding XRP on its balance sheet.

Key Takeaways

• Wellgistics is using XRP Ledger for pharmacy payments.
• The system aims to reduce costs and increase efficiency.
• The company plans to expand the platform to manufacturers and direct-to-patient services.