There were several rumours during the last year regarding Ripple signing a partnership with SWFT. Ripple is one of the largest companies in the virtual currency market and SWIFT is the biggest services provider for cross-border transactions. SWIFT is a market leader that has been offering these services for more than 40 years. Ripple is trying to revolutionize this industry providing faster and better services to financial companies around the world.
Although rumours spread on the internet regarding the possibility of a partnership between these two companies, the reality is that none of them denied or accepted these allegations.
Some time ago, SWIFT published an article in which they explain that they are working with blockchain technology in order to improve their services. The SWIFT GPI system is processing interbank payments in a fast and cheap way, reducing friction and increasing efficiency.
Christof Hofmann, MD and Global Head of Payments and Collection Products at Deutsche Bank commented:
“We believe the GPI pre-validation service will add significant value to our clients, increasing the overall GPI client experience. Beneficiary account validation addresses an important pain-point in cross-border payments; it will help increase STP rations while reducing fraud and exception handling.”
SWIFT is working with Hyperledger technology to create its own blockchain solution. This shows that there might not be a reason to be partnering with Ripple in the future. Furthermore, a SWIFT spokesperson commented that they are not planning to work with Ripple in the future. The spokesperson said that they are working in a platform that is not related to RippleNet.
Additionally, Ripple answered that they are also working in a product that aims at competing against SWIFT rather than partnering with them. This is what Cory Johnson, Ripple chief market strategist, clarified this issue explaining that Ripple wants to be a replacement for SWIFT.
– Ripple is meant to replace SWIFT
– XRP is meant to be a digital way to move value
– All of Ripple’s customers are using both Ripple and SWIFT
Cory Johnson, Ripple
— Steven Diep (@DiepSanh) January 3, 2019
Ripple has been expanding all over the world trying to improve cross-border transactions between financial companies and banks. SWIFT has a service that tends to be slow and old compared to what Ripple is curently developing. At least in the short-term, these companies are not working together.