Did Chainlink Just Take XRP’s Place With SWIFT… or Is the Story More Complicated?

For years, many people in the XRP community believed Ripple’s technology would become SWIFT’s partner in modernizing cross-border payments. The idea was that XRP could move money across borders in seconds at a very low cost, replacing or complementing SWIFT’s slower system.

SWIFT, the global messaging network used by banks, has been around since the 1970s. It is secure and reliable, but international transfers often take several days.

Chainlink, on the other hand, became known for its role as a data oracle, providing blockchains with accurate real-world information. At first, it seemed unrelated to XRP’s mission. XRP focuses on settlement, while Chainlink focused on connecting blockchains to off-chain data.

That changed when Chainlink introduced CCIP, the Cross-Chain Interoperability Protocol. CCIP can connect different blockchains together, and SWIFT has been working directly with Chainlink to use this technology.

This partnership is significant. SWIFT is using Chainlink to connect its network of over 11,000 banks to various blockchains. Tests have already been done with major institutions like BNP Paribas and BNY Mellon, moving tokenized assets across chains.

This means SWIFT is upgrading itself with blockchain technology, and Chainlink is the main provider making it happen.

Does This Leave XRP Out of the Picture?

At first glance, it might look like Chainlink has replaced XRP in SWIFT’s plans. However, they serve different purposes. Chainlink manages connectivity, messaging, and data between systems. XRP is a settlement asset that moves value quickly and cheaply across borders.

In practice, this means SWIFT and Chainlink can set up the connection between two banks. To actually move the money, a currency or digital asset is still needed. This could be tokenized fiat, a stablecoin, a CBDC, or a cryptocurrency like XRP. In this scenario, XRP could still be used as the bridge currency.

There is even some cooperation between Ripple and Chainlink already. Ripple has used Chainlink’s price feeds for its RLUSD stablecoin. This shows the two technologies can work together rather than replace each other. Chainlink can handle the communication, while XRP can provide the liquidity and settlement.

The Bigger Picture for Crypto and Banking

The debate between the XRP community and Chainlink supporters has been heated. Some argue that Chainlink’s progress proves XRP is overvalued. Others believe XRP’s settlement role still makes it essential. The truth is both may have a place in the future of banking and blockchain.

SWIFT’s use of Chainlink future-proofs its network, allowing it to connect with many blockchains. This also creates opportunities for XRP to be part of transactions where fast settlement is needed. Instead of competing directly, the two technologies could strengthen each other’s adoption.

Read Also: Can Chainlink (LINK) Really Hit $100… Or Is the Hype Getting Ahead of It?

For investors, this means it might not be a case of choosing one over the other. Chainlink’s success could help XRP gain more real-world use cases, and XRP’s payment network could give Chainlink’s connectivity even more value. The story is not just about one project winning, but about how both could be part of the same system.

Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.

The post Did Chainlink Just Take XRP’s Place With SWIFT… Or Is the Story More Complicated? appeared first on CaptainAltcoin.