Ripple’s XRP losing competitive advantage: BIS and SWIFT going real-time

Rick Steves

Nexus is a model for connecting multiple national payment systems into a cross-border platform that could enable international payments to happen as quickly as sending a text message.

The Bank for International Settlements (BIS) has partnered with the Monetary Authority of Singapore, the country’s financial supervisory authority, to publish a blueprint for the multilateral linking of domestic real-time payment systems across borders.

Building on the bilateral linkage between Singapore’s PayNow and Thailand’s PromptPay launched in April 2021, the blueprint also leverages the experience of the National Payments Corporation of India’s (NPCI) development and operation of the Unified Payments Interface (UPI) system.

The blueprint is titled Project Nexus (link to .pdf) and envisages the creation of ‘Nexus Gateways’ that serve to coordinate compliance, foreign exchange conversion, message translation, and the sequencing of payments among all participants.

An overarching Nexus Scheme sets out the governance framework and rulebook for participating retail payment systems, banks, and payment service providers to coordinate and effect cross-border payments through the network.

Benoît Cœuré, head of the BIS Innovation Hub, commented: “Project Nexus is trying to achieve the equivalent of internet protocols for payments systems. That means creating a model through which any country can join by adopting certain technical and governance requirements.”

Project Nexus requires participating countries to adopt the protocols once to gain access to the broader cross-border payments network. Countries won’t have to negotiate payment linkages with each jurisdiction on a bilateral basis.

Andrew McCormack, head of the BIS Innovation Hub Singapore Centre, said: “Country-to-country and regional payment connections already exist. But they require significant coordination efforts, which increase exponentially with more participants. Three countries require three bilateral links but 20 countries would require 190 bilateral links.”

Nexus is a model for connecting multiple national payment systems into a cross-border platform that could enable international payments to happen as quickly as sending a text message, the Bank for International Settlements announced.

Ripple’s XRP, what about now? SWIFT announces cross-border payments in seconds

BIS proposes to connect national systems internationally to improve speed, cost, and transparency of cross-border payments, which basically sums up the mission of blockchain firms such as XRP-powered Ripple, ex-Ripple founder Jed McCaleb’s Stellar (XLM), and newly launched Algorand-powered Six Clovers.

SWIFT has just announced cross-border payments in a matter of seconds with its new messaging product SWIFT Go, which is complementary to cross-border settlement services such as BIS’ Project Nexus and Ripple’s On-Demand Liquidity.

Yesterday, Ripple announced the go-live of its On-Demand Liquidity in Japan, thus setting the stage to drive more adoption of crypto-enabled services in the Asia Pacific.

The news further proves the utility of the XRP Ledger in a turbulent period for Ripple Labs due to the ongoing lawsuit with the SEC, which claims XRP to be a security for its “decentralized nature“.

SEC Commissioner Hester Peirce has recently come forth to clarify that the agency could file complaints against firms for unregistered security offerings even if said instrument is not a security in the eyes of the SEC.

The same Commissioner has released a public statement together with SEC Commissioner Elad Roisman – “a gift from the heavens” – admitting to the lack of clarity within the digital asset space, further contributing to Ripple’s claim that it had no fair notice that XRP could be deemed a security.

Ripple’s Fair Notice defense is believed to be a threat to the SEC’s future enforcement actions against the crypto ecosystem. The agency itself warned the Court that a Ripple win on Fair Notice would nullify the Howie Test.

In June, BIS opened an Innovation Hub in London to push for digital currencies. Later that month, the institution praised CBDCs against Bitcoin, while adding that stablecoins are no game-changer as they have the potential to fragment the liquidity of the monetary system.

Read this next

Retail FX

Fullerton Markets Caps Off Stellar Year with Dual Triumph at Gazet International Awards 2023

Fullerton Markets, one of the fastest-growing brokerages in the Asia Pacific, has today announced its remarkable success at the prestigious Gazet International Awards 2023, where it secured two coveted accolades, reinforcing its position as a global leader in multi-asset brokerage and marketing a triumphant end to the year.

Inside View

Are brokers really ready for EMIR Refit and ESMA changes in 2024?

The EMIR Refit and ESMA reporting requirements necessitate a strategic approach from brokers, involving major updates to reporting systems, data collection processes, and internal resources. We spoke with brokers and RegTech providers to learn more about the upcoming regulatory challenges.

Digital Assets

Binance to phase out BUSD support in two weeks

Binance has announced its plans to gradually phase out support for its native stablecoin, BUSD (Binance USD) by December 15, 2023. This move comes after Paxos, the issuer of BUSD, decided to stop minting new tokens.


Binance Labs invests $3.15M in Open Campus to advance Web3 education

Binance Labs, the venture capital arm of the cryptocurrency giant Binance, has invested $3.15 million in Web3 education platform Open Campus.

Institutional FX

Brighty App unveils EU B2B payment platform amidst exploding market

Brighty App is set to launch its European B2B platform, Brighty Business, this month. This platform is geared towards improving how businesses handle their financial operations, especially in the digital banking and cryptocurrency domains.

Digital Assets

Celsius’ withdrawal process slowed by overwhelming demand

Bankrupt crypto lender Celsius is taking steps to allow certain customers to withdraw their funds. However, some users have reported difficulties in logging in to process their withdrawals, as indicated by posts on various social media platforms.

Digital Assets

Cristiano Ronaldo hit with $1 billion lawsuit over Binance NFTs

Cristiano Ronaldo, the renowned footballer, is facing a class-action lawsuit in the United States over his promotion of Binance, the world’s largest cryptocurrency exchange.

Digital Assets

Zipmex creditors offered 3.35 cents on the dollar payout

Zipmex, a Thai crypto exchange grappling with financial difficulties, has proposed a restructuring plan to repay its creditors.

Digital Assets

FSB warns of risks posed by multifunction crypto-asset intermediaries

The report on Multifunction Crypto-Asset Intermediaries (MCIs) provides an in-depth analysis of these entities which combine various crypto-asset services and products, typically centering around a trading platform. These services can include proprietary trading, investment functions, issuance, promotion, and distribution of crypto-assets, including stablecoins.