Swift Teams Up with Consensys: Is XRP’s Dominance at Risk?
According to the Financial Times, Swift is now collaborating with Joe Lubin’s Ethereum development company Consensys on a blockchain-based shared ledger network. Real-time cross-border payments will be the primary function of the unlaunched network. This implies that it will face off against enterprise blockchain company Ripple, which is most well-known for being connected to the well-known cryptocurrency XRP.
Global Banking Giants Back Swift’s New Ethereum-Based Payment Network
Numerous financial organizations from around the world are involved in the project, including European powerhouse Deutsche Bank and American banking behemoth JP Morgan. A prototype that is presently being created in partnership with Consensys will be put to the test by each of these participants. In order to make transfers more effective, the ledger network will try to speed up transactions and lower fees. Notably, both tokenized assets and regulated stablecoins will be supported by the infrastructure that Swift and its partners have constructed. Both public and private blockchains can be used with the system.
Swift’s Blockchain Initiative Aims to Counter Stablecoin Threats
According to the Financial Times report, Swift‘s decision to launch its own blockchain is intended to guarantee that the primary messaging platform for international payments will continue to be significant despite the burgeoning stablecoin market. McKinsey, a global management consulting firm, has cautioned that the Belgium-based group is at risk from the burgeoning stablecoin business. In this regard, the ledger network will deter banks from avoiding Swift in the future.
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