What does SWIFT partnering with R3 mean for Ripple and XRP?

30 Jan, 2019 | Updated: 31 Jan, 2019
by Richard Allen
News
What does SWIFT partnering with R3 mean for Ripple and XRP?

Announced during the Paris Fintech Forum earlier today, SWIFT CEO Gottfried Liebbrandt stated his company has partnered with R3 that will see SWIFT making use of R3’s Corda platform, but what does all this mean for Ripple and XRP?

Starting at the top, global payment network SWIFT revealed its plans of launching a proof-of-concept of a gateway called GPI Link that will enable blockchain technology firm R3 to link to GPI payments from their own platform. This essentially means that obligations that exist for a Corda user can now be settled using XRP.

Read more: Payments network SWIFT said to be looking to integrate blockchain tech with R3

CEO of R3, David Rutter commented on their trial with Ripple several months ago:

“The tradition of holding numerous currencies across multiple accounts in different countries is costly and inefficient. This is a legacy issue from a time when the technology did not exist to offer a viable alternative; however, digital assets and distributed ledgers can now enable real-time exchange of currencies between parties anywhere in the world without the need for a third-party intermediary. This prototype paves the way for a major overhaul of how banks process and settle cross border payments.”

What does the partnership mean for Ripple?

David Schwartz, Chief Technology Officer at Ripple explained on Reddit several months ago what something like this would mean for the future of the company. He stated that the primary reason Ripple is working in the payments space is that the current payment technology isn’t good enough to fully realize the benefits of XRP. Now, instead of fighting SWIFT for the development of a more sophisticated network, Ripple will instead be able to dedicate more resources to the execution of their XRP strategy.

Senior Vice President of Global Transaction Banking at CIBC summed up the benefits in a statement, saying, “A more efficient global payment system is all about making payments faster, easier and more transparent for businesses and consumers. Using innovative technology to rethink traditional processes is exactly what’s needed to give businesses everywhere an easier way to send and receive payments, and we are very active in making that a reality for our clients.”

Impact on the rest of the market

But this news doesn’t only mean good things are coming to Ripple. For SWIFT, with 10,000 banks in its network, to use XRP may just be what the market needs to get out of the current bear market, and may even pave the way for regulatory clarity that the industry so desperately needs. Additionally, mainstream media will have the opportunity to report on the real-world adoption and legitimacy of blockchain and cryptocurrencies.

All this means that, once the news broke, XRP surged around 9.74% in less than an hour. At the time of writing, XRP is up 9.06% and trading at $0.318.

Read more about the use of XRP and R3's Corda at Ripple and R3. Additionally, here is the press release.

Read more: XRP spikes nearly 10% after SWIFT partners with R3

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Read more about: Ripple (XRP)

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