Ripple, targeting the $155 trillion payment market... will it push out SWIFT?

▲ XRP, SWIFT, traditional finance, international payments/ChatGPT generated image

Ripple is targeting the global cross-border payment market, which amounts to $155 trillion, reigniting the debate among XRP investors about replacing SWIFT (Society for Worldwide Interbank Financial Telecommunication). While expectations are rising with the disclosure of a collaboration with Jeonbuk Bank in Korea, the dispersion of demand with the stablecoin RLUSD has been identified as a variable for a substantial price increase.

According to CoinGape, a virtual asset specialized media outlet, on September 28 (local time), Ripple's expansion of its payment network is once again drawing attention ahead of Sibos 2026, the annual financial conference. With the recent news that Jeonbuk Bank has adopted Ripple's blockchain solution instead of SWIFT in its overseas remittance network, the so-called '$155 trillion narrative' that Ripple could completely replace traditional interbank communication networks has spread again in the market.

Experts pointed out that the specific market segmentation of the $155 trillion figure needs to be clarified. This is because the personal remittance market, estimated at approximately $685 billion annually, and the large-scale institutional transaction market between banks are entirely different areas. Ripple's self-issued stablecoin RLUSD targets retail and business-to-business transactions that prefer less volatile payments. In contrast, XRP acts as a bridge currency connecting different currencies, meaning that the total payment volume does not directly translate into direct buying pressure for XRP.

Even if the banking sector adopts Ripple's payment network, whether it will lead to demand for XRP holdings remains a contentious issue. Many traditional financial institutions tend to prioritize using dollar-pegged RLUSD or RippleNet's messaging software over highly volatile virtual assets. This analysis suggests that structural limitations exist before the expansion of the payment network can fully translate into the absorption of XRP token liquidity.

Nevertheless, the successive transition of Asian financial institutions to blockchain-based remittance networks is considered a key milestone proving Ripple's network value. To overcome the slow processing speed and high intermediary fees of the existing SWIFT network, global commercial banks, including those in Korea, are increasingly adopting Ripple solutions. There is also considerable optimism that the faster the adoption rate by institutional finance, the more the liquidity pool of the XRP Ledger can expand in the long term.

The expectation of SWIFT replacement, triggered by Jeonbuk Bank's adoption case, is creating positive repercussions on the overall supply and demand in the virtual asset market. Market attention is focused on whether Ripple can successfully manage the division of roles with RLUSD during its penetration into the $155 trillion market, thereby driving a substantial surge in demand for XRP.

[Article Key Summary]

-As Ripple targets the $155 trillion cross-border payment market, expectations have been rekindled by Jeonbuk Bank's SWIFT replacement case.

-The annual $685 billion personal remittance market is handled by RLUSD, and the issue of demand dispersion with XRP was cited as a structural variable.

-Attention is focused on whether the widespread adoption of blockchain remittances by traditional financial institutions will lead to an expansion of XRP Ledger liquidity in the future.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*