XRP fans were disappointed this weekend when transnational banking giant SWIFT chose Linea, an Ethereum-based layer 2 blockchain developed by ConsenSys, for on-chain bank messaging.
In a follow-up disappointment for Ripple and its RLUSD stablecoin, SWIFT, which processes over $150 trillion worth of wires annually, also chose Linea-based stablecoins for its pilot program.
For years, XRP investors have hoped to either displace SWIFT or convince it to adopt the XRP Ledger’s messaging system.
Similar to SWIFT, XRP’s blockchain and on-demand liquidity facilitates cross-border settlements of fiat or stablecoins using XRP as a bridge asset.
XRP’s failed attempts to target SWIFT
Alternately marketed as a “SWIFT killer” or a no-brainer partner to reduce processing times and fees, the XRP Ledger was purpose-built for consummating cross-border payments. However, SWIFT has chosen to prioritize another blockchain.
SWIFT’s interbank messaging system is under development on Linea, and SWIFT already has BNP Paribas and BNY working on Linea pilot programs.
Observers quickly interpreted the Linea announcement as a letdown for the XRP community, which had assumed that Ripple or the XRP Ledger would provide similar services for mainstream financial institutions.
“This cannot be true, not possible,” joked Gary Cardone, “I have been told for years that XRP has Swift all tied up, locked down.”
Indeed, fans of XRP believed its ledger was an alternative to SWIFT’s technology.
Ripple also introduced RLUSD, as part of its efforts to demonstrate the XRP Ledger’s capacity for compliant USD-denominated remittances.
Despite XRP influencers’ belief that SWIFT would choose their ledger or its stablecoin, SWIFT never confirmed a deal despite false reports of a promising pilot.
ConsenSys scores a win over Ripple
Linea is backed by ConenSys and a nonprofit organization known as the Linea Association. Initial reports indicate that SWIFT selected it for its privacy-preserving cryptographic proofs.
Linea emphasizes zero-knowledge proofs that could be valuable to banks that need to balance KYC/AML requirements with compliance and privacy obligations.
Read more: Here’s why Ripple XRP partnerships and MoUs often go nowhere
Linea has a proprietary, eponymously titled token, LINEA, which hasn’t rallied substantially since the news last week. Neither did the price of XRP react strongly to the news.
Both coins have traded within a single-digit percentage range over the past seven days.
In other recent news, $92 billion payment giant Stripe chose layer 1 blockchain Tempo for its services – also sidestepping the XRP Ledger entirely.
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Source: https://protos.com/years-of-hype-but-still-no-deal-swift-sidesteps-xrp-again/
