“`html
XRP’s ascent past its long-held barrier of $3.40 is more than merely a monetary achievement. It signifies Ripple’s evolving narrative from underdog innovator to genuine contender against traditional financial systems like SWIFT.
On July 18, XRP skyrocketed to a new peak of $3.65 and has consistently remained above its earlier high of $3.40. This monetary milestone arrives as Ripple broadens its international presence through a blend of cutting-edge payment frameworks, significant alliances, and the increasing application of XRP in actual financial dealings. Ripple now targets up to 14% of the global cross-border payments landscape, and the ramifications for SWIFT’s long-standing supremacy are becoming increasingly difficult to overlook.
Ripple Is Contesting SWIFT’s Framework
During a recent summit, Ripple CEO Brad Garlinghouse declared that Ripple intends to secure up to 14% of SWIFT’s existing cross-border transactions within five years. SWIFT has historically dominated global money transfers by functioning as a messaging system that directs instructions among correspondent banks. Conversely, Ripple provides a fully integrated framework via its On-Demand Liquidity (ODL) network, which utilizes XRP as a bridging currency. This eliminates the necessity for pre-funded nostro accounts and expedites transactions to mere seconds, with low average costs of just $0.0002.
SWIFT transactions can take several days and incur significant costs; Ripple’s method is swifter, cheaper, and more efficient. According to an XRP 101 guide shared on the social media platform X by crypto analyst John Squire, the primary issue XRP addresses is enabling near-instant, low-cost transfers across borders. This, consequently, renders it appealing to traditional banks and institutions.
Banks Tapping Into Ripple’s Practical Utility
Notably, recent advancements in the banking sector have seen Ripple progressing closer each day to its objective of capturing a 14% share of the $150 trillion cross-border payments market. The most evident indicator of Ripple’s success is its increasing usage for remittance, primarily in areas where banking inefficiencies are most noticeable.
In the Philippines, for example, UnionBank has emerged as the first fully licensed virtual-asset bank and has embraced RippleNet and ODL to enhance faster inbound transfers. ChinaBank, another bank in the Philippines, in partnership with Qatar National Bank, has executed XRP-backed transfers to bypass intermediary banks for transactions between Qatar and the Philippines.
In India, leading private banks such as Yes Bank and Axis Bank are utilizing XRP to support active remittance corridors linking the country to Southeast Asia, Mexico, and Brazil.
Moreover, Ripple is expanding its influence in Brazil and various countries in Latin America. Travelex Bank in Brazil, the first FX-centric bank authorized to use ODL in the region, relies on XRP to eliminate the necessity for pre-funded liquidity. In Mexico, Ripple’s partnerships with local non-bank financial institutions facilitate real-time payouts utilizing XRP.
Even in the Middle East, where regulatory adherence is notably stringent, institutions like LuLu Exchange, Zand Bank, and Mamo have adopted Ripple’s payment infrastructure for regulated settlements, primarily focusing on APAC and global remittance channels.
Featured image from Getty Images chart from Tradingview.com
Editorial Process for bitcoinist revolves around delivering thoroughly researched, precise, and impartial content. We adhere to rigorous sourcing standards, and each page undergoes careful examination by our team of leading technology experts and seasoned editors. This method guarantees the integrity, relevance, and worth of our content for our audience.
Source link
“`
