SWIFT is testing the technologies of XRP and Hedera to assess their compatibility with existing banking infrastructure, potentially opening new horizons for global payments.
Objectives of SWIFT's Trials
The trials conducted by SWIFT aim to evaluate how new digital ledgers, like XRP and Hedera, can integrate with existing banking standards, particularly ISO 20022.
Technological Advantages of XRP and Hedera
XRP is known for its rapid settlement speeds of around 1,500 transactions per second, while Hedera offers even higher throughput—up to 10,000 transactions per second—with minimal energy consumption, making them appealing for financial institutions.
Market Impact and Future of Digital Assets
The integration of these technologies into the existing financial system could lead to increased demand for tokens like XRP and HBAR. However, market reactions have been subdued, with the prices of these assets declining.
SWIFT's testing of XRP and Hedera underscores the importance of integrating blockchain into traditional finance, marking a step towards a faster and more efficient global payment system.
