Major financial institutions are increasingly testing digital assets, including XRP, to improve cross-border payments. A recent report by Mastercard, titled “Blockchain Technology Fuels New Remittances Business Cases,” highlights several examples of blockchain applications in remittance systems.

Speculation has resurfaced around a possible integration of Ripple’s XRP with SWIFT, the global messaging network for cross-border transactions. Previous reports have indicated that banks have tested XRP’s compatibility with SWIFT. If confirmed, such a partnership could significantly boost XRP adoption among global financial institutions.

SBI Remit Uses XRP for Transfers

The report also mentions SBI Remit, a Japanese money transfer service that uses XRP as a bridge currency. It places SBI alongside earlier examples such as MoneyGram and Stellar, suggesting a broader trend of using cryptocurrencies to cut costs and speed up cross-border transactions.

Ripple, the company behind XRP, has long positioned the token as a bridge asset for converting one fiat currency to another. This approach eliminates the need for pre-funded accounts in multiple currencies and aims to enhance liquidity in regions underserved by traditional banking systems.

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Ripple Joins BIS Task Force on Payments

Mastercard’s reference to Ripple and XRP adds credibility to the token’s role in remittances. It signals that mainstream payment firms are now taking a closer look at blockchain infrastructure. The inclusion gives Ripple added visibility in the financial ecosystem.

SBI Remit’s ongoing use of XRP in Asia further illustrates how digital assets are being integrated into real-world payment systems. The Mastercard report underscores that blockchain solutions are being evaluated across regions and technologies.

In parallel, the Federal Reserve and international organizations like the Bank for International Settlements (BIS) are also exploring ways to enhance cross-border payments. Ripple is reportedly participating in a BIS task force focused on reducing costs and improving interoperability.

Ripple Advances in Cross-Border Payments, DeFi, and Strategic Partnerships

Recently, Ripple has attracted attention due to several notable developments. Michael Saylor, Executive Chairman of Strategy, discussed the inclusion of cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano in US strategic reserves following President Trump’s executive order. Saylor proposed that XRP should be subject to regulation.

On January 6, Ripple’s CEO Garlinghouse and CLO Alderoty met with President Trump, fuelling speculation regarding the SEC’s 2020 lawsuit concerning XRP’s status as an unregistered security.

Ripple has expanded its partnerships with Revolut and Zero Hash, aiming to compete with USDT and USDC. In Portugal, Ripple has partnered with Unicâmbio to enable instant payments between Portugal and Brazil using digital assets.

In South Korea, BDACS plans to use Ripple Custody for securing XRP and RLUSD. Ripple also donated $100,000 in XRP for California wildfire relief. The company anticipates that Japanese banks will adopt the XRP Ledger by 2025 for cross-border payments.

In the DeFi space, Ripple has teamed up with Chainlink to integrate RLUSD into Ethereum platforms. Investor interest in XRP remains strong, with whales acquiring 520 million tokens during a recent price dip.

This article was written by Tareq Sikder at www.financemagnates.com.TrendingRead More

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