SWIFT’s leaked documentation presents the upcoming role of a few popular DLT-based blockchains. Ripple (XRP) & Stellar Lumens (XLM) are two household names in the Distributed Ledger Technology (DLT) compartment, offering high compatibility with SWIFT’s recently-launched ISO 20022 global messaging standard.
This new gold standard of the financial world is favorable for DLT chains, but Ripple’s XRP stands out from the crowd for two reasons. Firstly, Ripple Labs, the parent company of XRP Ledger, has already been doing business with at least 30 of SWIFT-supportive major banks, including Santander, SEB, Royal Bank Of Canada, Deutsche Bank & plenty more.
SWIFT Doc Reveals Multiple Lines Of XRP Connectivity
SMQKE, a well-respected blockchain researcher, has recently drawn the public’s attention to SWIFT’s segment on the competition in the cross-border field. One example, dubbed as ‘correspondent banking disintermediation’ explicitly shows Ripple & Stellar as commerce solutions to move money across borders along with MoneyGram, PayPal & Payoneer.
With these disruptive technologies now sitting really close to the core infrastructure that major banks rely on, SWIFT is trying to cover the gap between merchant expectations of immediate transfer settlement & cost efficiency. This year, SWIFT announced plans to be adding a blockchain based ledger, while previously confirmed testing XRP & HBAR on their rails.
In an additional document, SMQKE revealed SWIFT’s approach to implement the ISO 20022 gold standard.
For remittance, a multi-asset gateway is created to fulfill the top European financial conglomerate’s goal of an extended scope of blockchains operating between each other. In this scenario, DLT-coins like XRP & Stellar (XLM) can be used as bridge assets.
With both of these OG altcoins included in SWIFT’s new payment stack, it will be crucial to determine their exact roles in the modernization of global finance.
If used as a bridge asset between cross-border market participants, XRP or XLM could capture a piece of SWIFT’s humongous annualized trading volume, breaching $155 trillion – a figure 60 bigger than the current global crypto market cap.
Other routes towards integration could be via stablecoins, On-Demand Liquidity (ODL) maintenance or cross-chain settlement layers.
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People Also Ask:
Recent official SWIFT documents show that both Ripple (XRP) and Stellar (XLM) made the list of interoperable blockchains that can work directly with the SWIFT network using the ISO 20022 standard.
ISO 20022 is the new global standard for financial messaging. SWIFT has fully adopted it, and both Ripple and Stellar are already compatible with it, making it easier for banks to connect traditional systems with blockchain rails.
No. The documents point to a hybrid model where SWIFT keeps handling messaging and instructions, while XRP and XLM provide fast, low-cost settlement and liquidity behind the scenes.
Keep an eye on DailyCoin for reliable updates on the matter as well as any official announcements from SWIFT, Ripple, or Stellar about new pilots or integrations.
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