Two high-profile Layer-1 blockchains Hedera Hashgraph (HBAR) & Ripple (XRP) are battling it out for attention in institutional adoption. After Eric Trumpโs latest statement that the financial system exercised by the SWIFT conglomerate is โout-datedโ, the chances that Hedera Hashgraph would be implemented onto SWIFT as a distributed ledger became bigger.
Is HBAR & SWIFT The Perfect Match?
According to crypto analysts, itโs plausible that HBAR & SWIFT integration could happen to avoid a โrip & replaceโ situation. However, if Donald Trumpโs team were to impose restrictions on the traditionally-working SWIFT banking system, Ripple (XRP) would also qualify as the main contender for SWIFT integration.
To determine whether HBAR or XRP has the one-up in SWIFT integration, itโs important to follow the official statements. A few months ago, SWIFTโs Alisa DiCaprio made an appearance at the HederaCon in Denver, Colorado. She acknowledged the rising need for instantly settled cross-border transactions, as the usual 2-4 business day timeframe fails to meet expectations.
Sponsored
And so, the HBAR on SWIFT testing was confirmed by the Head of Industry Engagement at SWIFT, giving more substance to the tongues wagging across social media channels.
XRP Sees Multi-Trillion Dollar Chance
In contrast, Ripple CEO Brad Garlinghouseโs approach to XRP & SWIFT partnership talks is a bit more competitive. In the latest interview for FOX Business, Mr. Garlinghouse boldly stated that the Society for Worldwide Interbank Financial Telecommunications (SWIFT) would definitely require XRPโs assistance to modernize the infrastructure that was developed 50 years ago and would share some of the $155 trillion cross-border market.
Breaking down the stats, Hederaโs decentralized finance ecosystem (DeFi) currently has an edge with $194.98 million in total value locked (TVL). Meanwhile, Rippleโs XRP Ledger has $80 million on lock, even though Ripple (XRP) has nearly 10 times the trading volume on Spot markets. This hints at XRP already replacing SWIFT for some cross-border transactions, despite the two financial behemoths never inking a partnership deal.
On The Flipside
- Merely on technical terms, XRP wins against SWIFT due to efficient 5-minute transactions and a fixed fee rate of approximately $0.0002.
- On the other hand, SWIFT is a top-tier & well-trusted name in the financial world, giving a sense of security due to decades of experience.
Why This Matters
By 2027, at least 70% are bound to be credited within the hour of signing the transaction. Blockchain technology covers this need, but lacks regulatory compliance in comparison to SWIFT.
Read DailyCoinโs latest crypto news:
Robinhood Doubles Crypto YoY Gains, But Plans to Reduce Reliance
XRP Bulls Set Sights On $17: Mega Monthly Candle Coming Up?
