Teucrium CEO Sal Gilbertie has suggested that Ripple and its native token, XRP, may become central players in global finance, potentially surpassing the established SWIFT network for international payments.
He emphasized Ripple’s banking charter application and substantial XRP holdings as factors that could position the company among the world’s top financial institutions.
SWIFT Faces Potential Strain
Gilbertie raised concerns about the long-term stability of SWIFT, the decades-old system that enables banks to transmit cross-border payment messages. During an interview on the Paul Barron Show, he indicated that the network could experience significant disruption shortly.
According to Gilbertie, Ripple’s technological infrastructure, coupled with its move toward a banking license, could allow it to assume a dominant role in international finance.
He highlighted Ripple’s holdings of approximately 40 billion XRP tokens and speculated that if the company secures a banking charter, it could utilize these assets to become one of the largest capitalized banks globally.
The CEO underscored that such a shift could introduce efficiencies currently absent in traditional banking systems, including eliminating the need for pre-funding accounts in both sending and receiving countries for cross-border transfers.
Blockchain Efficiency and Market Impact
He further emphasized the operational advantages blockchain offers for international banking. He suggested that Ripple’s ledger system could unlock significant liquidity currently tied up in banks’ balance sheets.
By moving transactions from SWIFT to a blockchain-based network, banks could potentially streamline payments, reduce costs, and improve transparency.
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He noted that as global financial standards such as ISO 20022 are adopted, Ripple’s network may handle an increasing share of cross-border transaction volume, challenging SWIFT’s longstanding dominance.
He indicated that early adopters would likely begin public reporting of transaction volumes conducted via blockchain, which could highlight the growing role of distributed ledger technology in financial markets.
He also discussed the evolving regulatory landscape for XRP. He predicted that the U.S. Securities and Exchange Commission (SEC) might approve spot XRP exchange-traded funds (ETFs) before the end of the year. His firm previously launched the first leveraged XRP ETF in the United States in April, reflecting growing institutional interest in the digital asset.
Market Performance and Short-Term Challenges
Despite these positive projections, XRP has experienced recent market volatility. As of August 18, the token traded just below $3.00, but quickly rebounded to $3.06, marking a 3.91% decline over the past week.
Analysts have indicated that XRP’s near-term performance will depend on maintaining key technical support levels. Failure to surpass resistance at $3.30 could expose the token to further declines, while preserving support at $2.81 is critical to sustaining its bullish outlook.
While currently trading below its July peak of $3.65, XRP remains up more than 430% year-on-year, reflecting strong performance relative to broader market trends. Gilbertie’s perspective highlights the potential for Ripple and XRP to reshape cross-border payments, though near-term price fluctuations continue to present risks for investors.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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