Ripple made a significant stride in asserting its influence in traditional and modern financial institutions. Ripple used cryptocurrency technology to create faster fund transfers worldwide at lower costs.
According to Sendi Young, a managing director of Ripple, there is a larger demand in these financial institutions needing help in preparing for the dominant presence of cryptocurrency in the financial sector.
Ripple also partnered with Modulr, which provides messaging protocols like Faster Payments, Swift, SEPA, and the like.
Ripple improved RippleNet by adding Liquidity Hub in 2021, making it easier to buy, sell, and hold digital assets.
Traditional financial institutions are also starting to see the importance of Ripple and other cryptocurrencies in transferring funds. Fintechs are already using cryptocurrencies to make P2P transfers.
Block and PayPal are also collaborating to merge their merchant networks with cryptocurrencies to dictate their value through government-issued currency.
Ripple is also collaborating with Visa and Mastercard to accept cryptocurrencies with millions of merchants under their care.
However, Ripple’s process will need more improvements to achieve full integration among financial institutions.
According to Enrico Camerinelli, the strategic advisor at Aite-Noverica, Ripple would need to upgrade their system to make it interoperable between blockchain and traditional payment systems.
Nevertheless, this integration would be one of the most significant changes in the financial sector that have stayed the same since before the Internet. Young asserts that this model is no longer sustainable in modern society.