SWIFT Chainlnik Partnership Could Bypass Need for Ripple XRP: What can Ripple do?

Ripple XRP and RLUSD aim to act as a bridge for financial institutions and businesses to facilitate cross-border transactions with low fees and innovative speeds. 

SWIFT is a global interbank communications network that allows secure, efficient communication to take place between banking institutions around the world. 

Spectators aware of SWIFT’s partnership with Chainlink have noted that LINK’s CCIP (Cross-Chain Interoperability Protocol) could be used to bypass Ripple and provide secure communications between web3 and traditional banking systems. Should Ripple be worried?

SWIFT Chainlink Partnership: Where does Ripple fit?

Chainlink’s CCIP messaging interface allows blockchain networks to communicate with each other effectively and securely, making cross-chain communications simple and straightforward.

Cross-chain interoperability with Chainlink technology has become an industry-standard in the cryptocurrency industry, with application developers, blockchain networks, and web3 systems integrating CCIP for cross-chain communication. 

For SWIFT, Chainlink’s CCIP can be used to help blockchain and traditional financial systems communicate data seamlessly to and from each other. 

Chainlink’s SWIFT integration can also lead to tokenized assets being transferred between banks and blockchains. Stablecoins and various digital assets can be transferred from banks into on-chain systems with SWIFT and CCIP, connecting web2 and web3 financial systems. 

SWIFT’s integration of CCIP would make usage of Ripple’s XRP token as a bridge asset almost redundant, with SWIFT being able to rely solely on Chainlink’s communications protocol. 

The ability of SWIFT to accomplish its financial connectivity goals by collaborating with Chainlink and ignoring other third parties has made XRP holders question the possibility of SWIFT making such a decision. 

With that in mind, how could Ripple combat Chainlink and maintain a foothold in global banking communications with blockchain networks?

Ripple XRP and SWIFT: What can Ripple do?

XRP was designed to be a bridge currency between financial banking institutions and blockchain tech to facilitate greater cross-border transactions. 

Chainlink’s CCIP would make using XRP for liquidity and settlements of currencies pointless because SWIFT can easily integrate Chainlink’s technology. 

To get ahead of this, there are multiple avenues that Ripple can take to stay ahead of Chainlink’s CCIP partnership and keep XRP’s relevance in discussions on cross-border payment settlements. 

To do this, Ripple can leverage their regulatory compliance with US laws and international policies. Banking systems would prefer to utilize a fully regulated protocol over an unregulated one. 

Ripple On-Demand Liquidity (ODL)

Ripple’s On-Demand Liquidity solution enables near-instant settlements at low fees with XRP. Compared to SWIFT, Ripple’s payments system is a lot more streamlined, quicker, and affordable, something that banks will consider.

Ripple XRP in Emerging Markets

Ripple’s ability to target emerging markets will also help it gain a greater advantage. Regions in Africa, South America, and Asia can benefit from Ripple’s solutions since their banking systems are weaker and the demand for cross-border payments is very high. 

Instant Cross-Border Liquidity

XRP is capable of instant cross-border liquidity without requiring pre-funded accounts or gimmicks. When institutional players and businesses integrate Ripple, the network itself will become even more robust and a challenging opponent to CCIP. 

Round up: Ripple XRP cross-border payments vs. Chainlink

It’s clear that many spectators are not wrong thinking that SWIFT could bypass using Ripple XRP for their interoperability and cross-border payment systems, but Ripple is still able to gain an advantage. 

By utilizing Ripple’s access to speed, low fees, durability, and XRP’s on-demand liquidity, financial institutions will choose Ripple as a solution for global cross-border transactions. 

With the SEC finally dropping their case against Ripple, the XRP token has become one of the most regulatory-compliant cryptocurrencies in the market. With multiple ETFs due for approval, Ripple may not have a hard time beating its competition.