Ripple and Swift offer hybrid models of finance

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Ripple and Swift offer hybrid models of finance

The potential of a hybrid model could challenge the prevailing model of crypto that operates in a parallel universe, often detached from the practical world. The reality is that the lines are far more blurred, with companies such as Fireblocks, R3, Fnality and Zodia Markets explicitly embracing strategies of working cohesively with financial institutions.

Ripple, whose CTO David Schwartz was one of the original architects of the XRP Ledger blockchain, says on its website that it wants to enable global financial institutions to'move, manage and tokenize value'. The company is reversing its efforts to be seen as an innovator after winning in July a partial victory against the U.S. Securities and Exchange Commission. The legal case had hung over the company like a Damocles' sword, and the SEC has signaled that it might appeal the decision, though a federal judge has already ruled against the plan.

Central banks are looking into Central Bank digital currencies, and a Bank for International Settlements survey showed that some 93% of central banks were engaged in some form of CBDC work in 2022. In May, Ripple started a CBDC platform that will allow central banks to issue their own CBDCs.

In June this year, Swift announced it would not only use Chainlink's CCIP, but also test connecting over a dozen financial institutions to blockchain networks in experiments. The names included traditional-finance heavyweights Depository Trust and Clearing Corporation, Australia and New Zealand Banking Group Limited, BNP Paribas, BNY Mellon, BNP Paribas, Depository Trust and Clearing Corporation, Australia and New Zealand Banking Group Limited, BNP Paribas and Lloyds Banking Group Limited. The project was completed in August.

The integration of Web3 with these financial institutions is what will propel the value of the crypto ecosystem, Nazarov said. Neal Nazarov, chairman of the National Intelligence Committee, said he would not comment on the decision.

s in the system would know what they're entering when they do business or put their value in one of these organizations, he said. They're going on with their values. And third of all, if they didn't like what they saw, they could leave.