XRP News Today: Ripple Targets 20% of SWIFT’s Transaction Volume with XRP

Ripple Labs has set an ambitious target for its cryptocurrency, XRP, aiming to capture 20% of SWIFT’s annual transaction volume. This would translate to $30 trillion in annual value flowing through the XRP Ledger, given that SWIFT currently handles $150 trillion in cross-border transactions each year. This updated projection comes from a recent analysis by technologist Paul Barron, indicating growing confidence in XRP’s potential to compete with traditional payment systems.

Just last month, Ripple CEO Brad Garlinghouse had predicted a more modest target of 14% share of SWIFT’s volume within five years, which would still mean $21 trillion annually through XRP. The new target of 20% reflects Ripple’s increasing optimism about the adoption and integration of XRP in the global payment ecosystem.

SWIFT, which serves as the backbone of international banking, is used by over 11,000 financial institutions for payment instructions. However, it faces criticism for slow settlement times and high costs, with banks often waiting days for transactions to clear through the legacy system. In contrast, the XRP Ledger offers near-instant settlement at minimal cost, making it an attractive option for institutions seeking efficiency improvements.

Vincent Van Code, a blockchain advocate, recently suggested that SWIFT might announce plans to use XRP and Ripple technology. This potential shift would mark a dramatic change in the payments landscape, as SWIFT and Ripple have been competitors in the quest to modernize cross-border transactions. Ripple’s On-Demand Liquidity solution further enhances its appeal by eliminating costly nostro/vostro accounts, allowing banks to free up capital previously locked in these pre-funded accounts.

Despite the rivalry, SWIFT has shown openness to blockchain technology. The organization tested blockchain interoperability with Chainlink in 2022, demonstrating its willingness to explore decentralized technologies. Ripple has also acknowledged past conversations with SWIFT about potential collaboration and maintains partnerships with central banks worldwide. A SWIFT-Ripple partnership would represent unprecedented acceptance of digital assets in traditional finance, which has been slow to embrace decentralized technologies.

As market participants watch these developments, XRP’s value could see upward pressure if adoption predictions materialize. Ripple continues to position itself as the modern alternative to SWIFT’s infrastructure, emphasizing speed, cost savings, and scalability advantages. The company’s ambitious targets and strategic initiatives reflect its commitment to transforming the global payments landscape.