A very interesting video was posted on YouTube by a crypto vlogger, Thinking Crypto, and discussed a possible connection between Ripple and SWIFT, the handler of the “The Global Provider of Secure Financial Messaging Services”, through which the majority of interbank transactions are conducted. Of course, Ripple (XRP) would soar after such a deal. But how possible would be a partnership between Ripple and an international financial messaging service?
SWIFT is probably the oldest and the most used transactions handler between banks and other financial institutions. Recently, SWIFT released an enhanced version which already connects more than 11,000 banks from every corner of the world.
SWIFT is not a bank or a financial institution, it doesn’t store accounts or money! It is, similarly to the Ripple platforms, a system which conducts transactions.
In 1977, SWIFT has substituted Telex, the technology used since then to conduct every transaction between banks.
Through SWIFT, banks, custodians, investment institutions, central banks, market infrastructures and corporate clients, can connect with one another exchanging structured electronic messages to perform common business processes, such as making payments or settling trades.
Extracted from the SWIFT’s site
Ripple (XRP) would soar after a partnership with SWIFT
You might think SWIFT is old and expired but it is still the most used and trusted international financial messaging service. Even more than that, if you look deeper, you’ll notice that this system is like the ancestor of the blockchain.
On the other hand, both Ripple and SWIFT are similar payments and trades handlers, therefore, a partnership between them would be fruitful for every party, including banks and their customers.
First, if SWIFT system will merge with Ripple blockchain, customers will enjoy instant cross-border transactions. Secondly, the banks will gain more traceability over the transactions.
This partnership, however, is unlikely to happen soon since both Ripple and SWIFT have their own market and, above all the similarities, they are competitors for the same sector.
However, Thinking Crypto, the crypto vlogger who came up with this “crazy” idea, managed to point out some common grounds between the two services and, even more, it has been shown that, instead of competing to each other, SWIFT could be complementary to Ripple and vice-versa.
In the end, such a partnership will definitely increase the XRP adoption rate, stability and, eventually, Ripple (XRP) would soar after a partnership with SWIFT, the major international financial messaging service.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.