XRP News Today: SWIFT Tests XRP and HBAR for Faster Cross-Border Payments

SWIFT, the global financial messaging network, is currently testing blockchain-based solutions from Ripple (XRP) and Hedera (HBAR) to enhance its cross-border payment systems. The initiative aims to leverage the efficiency, speed, and scalability of these digital assets while ensuring compatibility with the upcoming ISO 20022 standard, which mandates a more structured and standardized format for financial messaging. XRP and HBAR are being evaluated for their ability to streamline international transactions and reduce settlement times [1].

Ripple’s XRP Ledger is being tested for its On-Demand Liquidity (ODL) model, which uses XRP as a bridge currency to facilitate near-instant cross-border payments. Traditional SWIFT transactions often take 1–5 business days and cost between $10 and $50, whereas XRP transactions typically settle in 3–5 seconds at a cost of approximately $0.0002. This dramatic reduction in time and cost could make XRP a compelling alternative for certain liquidity corridors [2].

Hedera’s HBAR, meanwhile, is being assessed for its hashgraph consensus mechanism, which allows for high throughput and energy efficiency. The platform can process up to 10,000 transactions per second, making it a strong contender for volume-heavy applications. Both XRP and HBAR are compatible with the ISO 20022 standard, a key factor in their consideration, as it facilitates smoother integration with SWIFT’s legacy systems [3].

The exploration comes amid a broader shift in the financial industry toward blockchain-based infrastructure. Ripple CEO Brad Garlinghouse recently projected that the XRP Ledger could capture 14% of SWIFT’s global liquidity within five years, citing the growing importance of liquidity in cross-border payments [4]. While SWIFT has not yet committed to a final decision, the trials are part of a larger strategy to modernize the payments landscape and explore interoperability across different technologies.

Analysts suggest that SWIFT’s approach may lead to a complementary rather than competitive adoption of XRP and HBAR. This would allow SWIFT to leverage the strengths of each asset—XRP for liquidity and settlement speed, HBAR for throughput and governance—within a unified framework. However, regulatory compliance, governance models, and cost structures remain key considerations in the decision-making process [5].

SWIFT’s testing of XRP and HBAR marks a pivotal moment in the evolution of global payments. If successful, the integration could redefine how cross-border transactions are conducted, bringing blockchain closer to mainstream financial infrastructure and setting a precedent for future innovations in the sector.

Sources:

[1] title1.............................(https://www.ainvest.com/news/xrp-news-today-swift-tests-xrp-hbar-blockchain-cross-border-payments-2508/)

[2] title2.............................(https://timestabloid.com/swifts-best-choice-between-ripple-xrp-and-hedera-hbar-goes-viral/)

[3] title3.............................(https://coindoo.com/swift-tests-xrp-and-hedera-150-trillion-payment-network-could-be-blockchains-biggest-win-yet/)

[5] title5.............................(https://coinmarketcap.com/community/articles/68a82f2c3fa6d14fe03f00f8/)