- Ripple and Stellar Lumens are lauded as one of the best contributors to cross-border payments, and their compliance with ISO 20022 positions them to compete with Swift.
- The cross-border industry has been predicted to value around $250 trillion by 2027.
The role of Ripple Labs and Stellar Lumens in the cross-border ecosystem cannot be ignored as they rub shoulders with industry giants like Swift. To many XRP enthusiasts, Ripple’s future in the ecosystem cannot be questioned as it aims to dominate the industry and send the XRP price to an unimaginable height.
According to reports, this ecosystem is expected to value around $250 trillion by 2027. Several reports have lauded Ripple’s cross-border capabilities as its transactions are reported to streamline and enhance the efficiency of international financial transfers.
Experts believe that the use of XRP as a bridge currency eliminates cost, positioning it ahead of competitors.
On top of that, transparency and security which is reported to be an important consideration in every transaction is ensured with the RippleNet network of validators. Stu Alderoty, Ripple’s general counsel, said on record that its regulatory clarity could make it appealing for financial institution customers to embrace it.
I think we’re hopeful that this decision would give financial institution customers or potential customers comfort to at least come in and start having the conversation about what problems they are experiencing in their business, real-world problems in terms of moving value across borders without incurring obscene fees. Hopefully this quarter will generate a lot of conversations in the United States with customers, and hopefully some of those conversations will actually turn into real business.
Stellar Lumens and Ripple Could Complete Swift
Similarly, Stellar Lumen is also a pioneer in cross-border payment. The network was designed to reduce friction, improve financial inclusion, and set new global payment standards. Together with Hedera, Stellar Lumens, and Ripple are among the top ISO 20022-compliant cryptocurrencies.
ISO 20022 is known as an international protocol meant to replace the SWIFT system. So far, nine cryptos have been certified as ISO 20022-compliant. These are Quant (QNT), XRP, XLM, HBAR, IOTA (MIOTA), XDC Network (XDC), Algorand (ALGO), Cardano (ADA), and Verge (XVG). More cryptos are expected to join after the standardized identifiers for digital currencies which were previously not available were provided by ISO 20022.
Swift is reported to process more than 46 million messages each day, however, Isabel Schmidt, the Co-Head of Global Payments Products at BNY Mellon, believes there is a problem.
It’s not the only one. Payments are a patchwork. ACH, CHAPS, CHIPS – they all try to do the same thing. But they are not the same. Networks don’t integrate well with each other or the business processes they support.
The existing features of Ripple and Stellar Lumen, according to experts, coupled with their ISO 20220 compliance could position them to compete with Swift.
As of press time, XRP was trading at $0.575122 after declining by 4% in the last 24 hours. Investors, however, have 1.4% return on their investments in the last seven days.
XLM was also trading at $0.119223 after falling by 4.5% in the last 24 hours.
