TL;DR
SWIFT has launched a pilot integrating the XRP Ledger and Hedera Hashgraph under ISO 20022 standards, testing on-chain settlement across its vast $150 trillion messaging network. Early trials suggest these DLT rails could boost XRP and HBAR liquidity while demonstrating seamless interoperability with existing banking infrastructure.
Bridging Legacy Finance and Distributed Ledgers
For decades, SWIFT has served as the messaging backbone for thousands of banks and financial institutions. With ISO 20022’s richer data payloads going live, SWIFT’s innovation team sought to layer distributed ledger technology on top of its rails. By inviting both the XRP Ledger and Hedera to participate, SWIFT can compare performance, security, and throughput under real-world conditions.
- ISO 20022 Compliance: Ensures uniform message formats for global payments.
- XRP Ledger Strengths: Sub-second finality with sub-penny fees.
- Hedera Advantages: High transaction rates backed by enterprise governance.
What This Means for XRP and HBAR
Should SWIFT participants adopt these new settlement rails at scale, demand for XRP and HBAR tokens could surge. On-chain liquidity providers and market makers may see opportunities to earn fees by facilitating real-time cross-border transfers. Institutional corridors testing the pilot have reported settlement times slashed from days to mere seconds, hinting at significant cost savings for banks and their corporate clients.
Looking Ahead
Next phases of the pilot will assess regulatory compliance, network resilience, and participant feedback. If successful, this collaboration could pave the way for a hybrid model where traditional SWIFT messaging coexists with blockchain settlement, unlocking new efficiencies in global trade finance and remittance corridors.
Bottom Line
As the financial sector embraces DLT experimentation, SWIFT’s endorsement of on-chain settlement marks a turning point for crypto rails in mainstream banking.