SWIFT has an exciting Ripple slide that explains the possibility of GPI, Corda and XRD working together, an exciting frontier for crypto because of the collaborative model therein.
Ripple is a rapid transaction platform that seeks to offer a settlement option for a financial institution and liquidity providers. XRP can be leveraged for fast cross-border transaction settlement in interbank flows. This platform has a level of centralization and effectiveness that is attractive to centralized institutions. Given, it could very well be the first crypto to gain widespread mainstream institution use. With the apparent development of Libra cryptocurrency, the battle between the two could definitely be protracted for this space.
SWIFT settlements, on the other hand, provide the current standard for interbank transfers. The SWIFT GPI offers a new standard for banks to send and receive money anywhere in a transparent manner. Accordingly, SWIFT GPI has come to dominate interbank transfers.
Corda is probably the least famous of the three. That said, it has impressive financial transaction capabilities. This platform enables businesses a way to transact directly and privately using smart contracts. The open-source platform is therefore efficient for business operations as it reduces transaction and record-keeping costs.
Avenues for Collaboration
From the above profiles, these companies should definitely be going at it. Even though their operational models are markedly different, they are still in the same market. Nonetheless, the collaborative potential of the three has a colossal promise.
Incidentally, SWIFT can utilize Ripple even without having Ripple-SWIFT collaboration. This is because XRP is decentralized and independent. XRP exists to support the liquidity needs of any range of platforms. More tools outside Ripple can also take advantage and push the envelope with XRP.
At the end of the day, better interoperability in payment systems is a great thing for everyone. At the moment, the GPI link does not state that it will enable XRP or other crypto settlement payments. Regardless, these proposals are enough to give the industry a glimpse of future possibilities.
SWIFT transfers may be the slowest of the three options. However, the widespread industry legitimacy it enjoys is great for business. This is because centralized institutions are still coming around on the security of crypto solutions. On the other hand, XRP and Corda offer significantly faster solutions. Corporates who use Corda can transact XRP directly using Corda. This arrangement would obviously necessitate both corporates to hold XRP. This is because Corda is not a tool that facilitates XRP style conversion.
There is a need for settlement capabilities for DLT ecosystems. This overarching goal has to be an end game for various stakeholders in this digital future. SWIFT has had a great run but in every industry, a single monopoly kills dynamism.
In all fairness, SWIFT is exploring DLTs to stay with the times. SWIFT members will definitely not look to have the world swept from right under their feet. With the entry of faster and cheaper settlement options, customers may soon be inclined to look across the pool. Therefore, these collaborations will be a matter of necessity rather than pure intuition.
Nonetheless, such partnerships can be tremendous for the crypto industry. Whether it is in the field of big data, finance, and even advertising, blockchain platforms will have enormous influence in the future. Collaboration is a sustainable way to unlock those possibilities.