Where There's Smoke There's Fire: Is A Ripple, XRP And SWIFT Collaboration In The Mix?

During the last weeks, there has been speculation about Ripple partnering with SWIFT in order to improve cross-border payments. This brought a lot of hype to the XRP community that was really excited about this possibility. If Ripple partners with SWIFT, XRP would clearly benefit from it since it will be the currency used to transact between institutions around the world.

Ripple will be also part of the Sibos conference that is going to take place in Sydney in the coming weeks. This partnership could be one of the most important things that could ever happen to Ripple since it will have access to more than 11,000 clients that SWIFT is working with.

At the same time, Santander, part of RippleNet, has also partnered with SWIFT for the new Global Payments Initiative program. This led several enthusiasts to believe that the bank could be using third-party liquidity in order to settle cross-border transactions.

Ripple has also different solutions in order to provide liquidity to banks and other institutions with its different services and products.

On the matter, Ripple explains:

“RIppleNet efficiently solves these liquidity pain points for financial providers and banks using flexible solutions that address various types of liquidity provisioning… RippleNet’s pathfinding capabilities, financial institutions can even link together multiple liquidity arraignments within the same transaction to optimize their transaction networks.”

At the moment, instant settlement between banks using the SWIFT network is almost impossible, affecting the time to actually settle payments because of liquidity issues.

Currently, RippleNet is able to source liquidity in three different ways. The first one is bank to bank transactions such as it takes place in SWIFT. The second is to establish third-party fiat relationships between banks and other financial institutions. Finally, the third option is to use XRP as a bridge between currencies.

At the moment, transacting funds using XRP is the best solution for several companies. Institutions have to pay between 40% and 70% less in fees and settlement is done in two minutes. Furthermore, it is possible to expand the reach of the RippleNet into different payment corridors.

Dilip Rao, Global Head of Infrastructure Innovation at Ripple mentioned that forecasting the funding in real-time is a very big challenge that would result in ‘unhappy clients’ or money left over.

However, he said that a potential partnership between Ripple and SWIFT is ‘Idle speculation.’ Additionally, he said back in April that the company recognizes that its model can eventually lead to SWIFT’s demise. However, they would be happy to coexist with SWIFT.

Furthermore, Brad Garlinghouse said:

“Swift GPI is like putting a Ferrari shell on a Model-T engine. It’s a cosmetic upgrade on old infrastructure: messaging is still not tied to settlement, it’s unidirectional and can’t solve for liquidity.”

RippleNet was created so as to solve different problems experienced by SWIFT and it aims to do so while coexisting with the system. However, in the future, Ripple and SWIFT could work together and provide better services to financial institutions all over the world.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,195FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kraken Exchange Onboards Swiss Bank InCore to Help Euro Clients Buy Crypto With Fiat

Swiss Bank InCore has just become the first banking institution in the nation to provide banking services to Kraken crypto exchange. The deal, which was...

Bank Of Japan (BoJ) Launches ‘Technical' Study to Experimenting CBDCs

The race to launch a sovereign digital currency is heating up as Japan became the latest country to venture into a central bank digital...

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market. With 8.61% losses In...

Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper....

Crypto Hardware Wallet Ledger: ‘Funds are Safe' After ‘BigSpender' Vulnerability Found

A vulnerability was recently discovered by ZenGo in popular cryptocurrency wallets Ledger, Edge, and BRD. Named BigSpender, the vulnerability could lead to a double-spend...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today