Its Ripple vs Swift as incumbent explores expansion into digital asset network

Karthik Subramanian

Swift, a banking co-operative that handles cross-border payments, has signaled its intentions to explore the expansion into the digital asset network as well.

SWIFT threatens to block Israel, Russia and Iran

This is a very big sign that the digital assets are here to stay and their volumes are expected to grow in the coming years and this also represents a direct challenge to the likes of Ripple (XRP) and other private blockchains which were hoping to corner a large share of the cross-border payments industry.

Digital Assets are Here to Stay

Till a few years back, the digital assets were rejected as no more than a fad but over the last couple of years, their usage has grown exponentially which has forced the authorities, regulators, banks, and financial institutions to sit up and take notice. Now there is an increasing realization that these entities also need to improve their understanding and coverage of digital assets or else they would be left behind in the next stage of growth of the financial ecosystem, which the digital assets represent. The role played by Ripple, stablecoins and other digital currencies in cross-border payments does not seem to have missed the eyes of these firms.

“As a neutral cooperative with a reach across 11,000 institutions in more than 200 countries, and oversight by central banks globally, Swift is uniquely placed to engage closely in the future of securities,” said Thomas Zschach, chief innovation officer, Swift. “We look forward to this set of new experiments and innovating collaboratively with market participants on the emerging trend of tokenized assets.”

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

Central Banks into CBDCs

We are also seeing a lot of central banks around the world looking to launch their version of digital currencies and when this happens, all the platforms associated with the cross-border payments would be facing a big challenge as this would mean that they would need to upgrade and adapt their platform to a hybrid model which would need to handle both fiat and digital currencies.

Swift would now be exploring the interoperability between the various systems and participants and this would be done along with Clearstream, Northern Trust, SETL, and others who would act as transactional partners in different parts of the chain and study the transactional flow and clearing processes. The testing and exploration would be used to study how Swift can act as a kind of interconnector between all of these entities and ensure that stablecoins, CBDCs, and others can co-exist within the system and at the same time, maintain the robustness and reliability of the system now that it is clear that the digital assets would be around for the years to come. If Swift does manage to crack the digital assets network, it could hold a big advantage considering its size and its network of partners.

Read this next


Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.


BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Binance’s CZ could stay in prison until 2027, wife begs for mercy

Changpeng “CZ” Zhao, the founder and former CEO of Binance, has apologized for his decisions and accepted “full responsibility” in a letter to U.S. District Judge Richard A. Jones.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”