Following the resolution of its lawsuit with the U.S. Securities and Exchange Commission (SEC), Ripple has rapidly expanded its operations in the United States, signing contracts with more banks in just a few weeks, according to a March 27 report by The Coin Republic. The outlet cited Ripple Labs CEO Brad Garlinghouse, who explained that Ripple’s technology can process transactions in minutes, compared to the days required by traditional systems. This expansion could increase the number of banks using Ripple’s network, potentially positioning XRP for a more significant role in international finance.
Ripple vs. SWIFT: The Battle of Payment Networks
Ripple Labs is recognized as a company aiming to revolutionize the digital payment ecosystem. In contrast, SWIFT, a traditional cross-border payment network operational for over 50 years, remains the most widely used system among banks.
However, SWIFT has faced criticism for its slow processing times and high costs. According to an independent report, SWIFT transactions can take several days and involve multiple intermediaries, resulting in elevated fees.
Ripple offers an alternative system powered by blockchain technology. Its On-Demand Liquidity (ODL) service converts one currency into XRP and then into the destination currency, enabling near-instantaneous transactions. This eliminates the need for pre-funded accounts in foreign banks, reducing costs and boosting efficiency.
In an interview with Fox Business, CEO Garlinghouse revealed that, following the SEC lawsuit victory, Ripple has accelerated its contract signings with U.S. banks and payment companies. He noted that in the six weeks since President Trump’s election, Ripple secured more contracts with U.S. banks than it had in the previous six months combined. Garlinghouse emphasized that this success reflects financial institutions’ growing interest in alternatives to SWIFT’s outdated system.
XRP and Blockchain Technology: The Core of Ripple’s Ecosystem
XRP plays a central role in Ripple’s ecosystem. Used as a bridge currency for cross-border transactions, XRP facilitates fast, secure, and low-cost transfers via the XRP Ledger (XRPL). Unlike traditional financial institutions that require liquidity in multiple currencies, XRP enables instant currency exchanges, simplifying the transaction process.
However, XRP faces challenges due to its volatility. The asset’s price fluctuations raise concerns for financial institutions considering it as a payment medium. To address this, Ripple introduced Ripple USD (RLUSD), a stablecoin designed to offer stability while retaining the benefits of blockchain technology.
XRP Price: Is a Surge on the Horizon?
If Ripple establishes itself as a primary payment network replacing SWIFT, XRP’s price could see significant growth. Current market data shows XRP trading at $2.45, with a 2% correction over the past 24 hours. Analysts suggest that the current upward trend persists, and breaking the key resistance level of $3 could propel XRP to $5—a 105% increase from its current value.
Conversely, if the price falls below the $1.966 support level, this bullish outlook could be invalidated. Nevertheless, Ripple believes that expanding its market presence could make XRP a more stable and attractive asset for investors.
