Accelerating Cross-Border Payments: Ripple Sets Ambitious Target for XRP Volume Growth
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Ripple Sets $30 Trillion Target for XRP Cross-Border Payment Volume
In a significant shift in its ambitions, Ripple has announced its intention to capture 20% of SWIFT’s massive annual transaction volume. This new target represents a staggering $30 trillion in annual value flowing through the XRP Ledger.
The projected goal is an increase from previous projections that targeted a 14% share within five years, equaling $21 trillion annually. The updated estimate comes from technologist Paul Barron’s recent analysis, highlighting growing confidence in XRP’s ability to compete with traditional payment systems.
For context, SWIFT currently handles a colossal $150 trillion in cross-border transactions each year. The organization serves as the backbone of international banking, with over 11,000 financial institutions relying on its messaging network for payment instructions.
SWIFT faces criticism for its slow settlement times and high costs. Banks often wait days for transactions to clear through the legacy system, resulting in inefficient capital usage. In contrast, XRP Ledger offers near-instant settlement at a fraction of the cost, making it an attractive option for institutions seeking efficiency improvements.
The notion that SWIFT might announce plans to use XRP and Ripple technology has sparked excitement within the cryptocurrency space. Blockchain advocate Vincent Van Code recently suggested such a collaboration could be imminent. While the exact details remain unclear, this development would mark a seismic shift in the global payments landscape.
Ripple’s On-Demand Liquidity solution streamlines cross-border transactions by eliminating costly nostro/vostro accounts. This innovation enables banks to free up capital previously locked in these pre-funded accounts. Ripple has already secured partnerships with central banks worldwide and has demonstrated significant progress in blockchain integration.
SWIFT tested blockchain interoperability with Chainlink in 2022, indicating a willingness to adapt to the changing landscape. Despite years of rivalry between SWIFT and Ripple, the organizations have engaged in past conversations about potential collaboration.
The token’s current trading price stands at $2.78 as market participants closely monitor these developments. A successful achievement of this ambitious goal could lead to significant upward pressure on XRP’s value.
Source: blockonomi.com
