Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. SWIFT, the global network that handles most of the world’s cross-border payments, is preparing to launch its own blockchain as rumors about an ongoing payments battle with Ripple circulate. While many often compare SWIFT’s role to Rippledue to its XRP-linked payment solutions, this new plan is not a direct challenge to the fintech company, but rather part of a much larger trillion-dollar race to define the future of digital money. SWIFT Partners With Consensys To Build Blockchain Network
According tothe announcement, SWIFT is collaborating with Consensys, the Ethereum development company founded by Joe Lubin, to create a shared digital ledger that supports faster, cheaper, and more efficient international transactions. Related Reading Early Bitcoin Investor Reveals Biggest Regret After Years In The Market 1 day ago
SWIFT is still keeping its blockchain ledgerin the prototype stage, but leading banks are already testing it. JP Morgan in the United States and Deutsche Bank in Europe are among the major institutions participating in these early trials.
SWIFT and its partners design the new infrastructure to support regulated stablecoins as well as tokenized assets. The shared ledger links directly to private blockchains that organizations use internally and to public blockchains open to the general public. By connecting the two, banks and financial companiesin different regions will be able to join the platform without having to abandon the systems they already use.
Ripple, long known forlinking its XRP token with cross-border solutions, has been in this space for years. However, the announcement notes that SWIFT’s strategy differs. Instead of relying on a single cryptocurrency, it is creating a network that works directly with banks and established institutions. Trillion-Dollar Stablecoin Threat Pushes SWIFT Into Blockchain Race
SWIFT’s move to launch its own blockchain could be part of a much bigger trillion-dollar battle in the payments world. Stablecoins, which are digital assets tied to fiat currencies, are now used in transactions worth trillions of dollars. The rise of stablecoins could challenge SWIFT’s long-established role in global payments. If banks beginto settle transactions directly with stablecoins, they may no longer depend on the global messaging network for cross-border transfers. Related Reading XRP Price May Not See An Explosive Rally In October As Expected, Here’s Why 2 days ago
The rapid growth of stablecoins could prompt banks to bypass SWIFT altogether, and if banks opt to use new digital payment systems instead, SWIFT’s role could shrink significantly. The global messaging network for financial institutions is now building the blockchain ledger within its framework to reduce this risk and prevent banks from migrating to rival providers.
The move does not mean SWIFT is going head-to-head with Ripplealone. As stablecoins and tokenized money gain wider adoption, SWIFT is developing its own blockchain ledger to maintain its central position in the international payments market. The global financial messaging giant may be working to strengthen its leading position and prepare for the trillion-dollar race that could shape the i nternational money transfermarket. Bulls return after September lull | Source: XRPUSDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com