SWIFT's New Blockchain Payment Solution Passes Key Milestone. Here's Why That's Bearish for XRP
Key PointsStandard Chartered and HSBC just successfully transferred funds on SWIFT's ledger.
Just over a year ago, Ripple CEO Brad Garlinghouse announced that XRP could potentially capture 14% of SWIFT's volume by 2030. This ambitious target now appears implausible as XRP payment volumes are currently declining. SWIFT, the international banking network that handles most cross-border money transfers through a secure messaging system, is making strides in integrating blockchain solutions.
The primary benefit of blockchain transactions is their speed and lower costs compared to traditional financial methods. Ripple's XRP was created as a bridge asset, offering a common currency for efficient cross-border payments and competing with SWIFT by reducing costs and settlement times. Given that SWIFT processes the equivalent of the world's GDP roughly every three days, even a minor share of that market could have been immensely beneficial for XRP's value.
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