All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Ripple CEO Brad Garlinghouse is optimistic the firm can compete with SWIFT.
- The crypto leader also shared insights on planned IPO, stablecoin release, and regulation.
Brad Garlinghouse, the CEO of Ripple Labs Inc. has disclosed plans to outpace the traditional SWIFT network to become the world’s payment leader. Garlinghouse outlined Ripple’s edge against SWIFT while speaking at an interview with Fortune’s Andrew Nusca.
Ripple Competes With SWIFT for Dominance
Garlinghouse commented on Ripple’s competitive stance with the SWIFT network, the global standard for payment and securities trade transactions. He outlined some limitations in using SWIFT such as high transfer costs and opined that the network has not moved with the internet advancements in technology.
“At the core, we are trying to let value move the way information moves today,” stated Garlinghouse.
He explained that Ripple views a world where payment networks become interoperable and sees a potential to unlock value for society. “Eventually, we will get there, but because this is a payment network, we need to move slowly and make sure it becomes regulatory compliant,” the CEO added.
As highlighted in our previous article, banks like Standard Chartered and BNP Paribas use both Ripple and SWIFT. This highlights the increasing attention Ripple is getting as a payment platform for cross-border transactions.
Besides the talk on SWIFT, Garlinghouse delved into the company’s strategic roadmap, plans for an IPO, and sentiments of the broader crypto market. He also talked about Ripple’s case with the US Securities and Exchange Commission (SEC), which has lingered for over three and half years.
The CEO stated that the core matter of the case has been resolved, but noted that there are still some issues that need to be ruled upon by the Judge. He, therefore predicts a full resolution of the case in a month or two.
The Regulatory Bottleneck
When asked whether regulation is important for Ripple’s business, Garlinghouse says the United States has fallen behind other nations in enacting clear crypto policies. As a result, Garlinghouse disclosed that there are no imminent plans for Ripple to launch an Initial Public Offering.
In the place of an IPO, Ripple has been conducting share buy-back from investors and employees, Garlinghouse disclosed. The CEO says Ripple is in the middle of a tender offer to repurchase $1.4 billion worth of stock from shareholders.
In the general crypto market, Garlinghouse says the long-term projection for crypto is positive based on regulatory and inflationary dynamics. He said the market will continue to grow, with new use cases for blockchain in the next five to ten years.
When asked about stablecoin, Garlinhouse said Ripple hopes to go live with its stablecoin later this year. He added that some of its customers already use stablecoins like Tether (USDT) to process transactions, thus fueling its move to develop its own.
Will XRP Price Hit $1?
Brad Garlinghouse’s recent disclosure regarding Ripple’s ongoing plans and challenges has raised questions about the likely effect on XRP’s price. Specifically, speculations abound on whether XRP could hit the $1 price soon.
As of this writing, XRP has declined by 5.3% in the past 24 hours, with its price set at $0.5483. The trading volume dropped by 42% to $2.2 billion, indicating reduced investor sentiment. Nonetheless, the coin has demonstrated resilience in the past and even recently climbing the $0.6 level.
Moreover, a favorable ruling for Ripple in the ongoing case with the SEC could increase the adoption of XRP. If this happens, XRP may see further price increases, and even reach the $1 mark.
