A recent tweet by tech researcher SMQKE has highlighted why XRP was chosen as the settlement mechanism for Corda Settler and how this system ties into SWIFT’s Global Payments Innovation (GPI).
Selection for Corda Settler
The video provides context around the creation of the Corda Settler module, an open-source application developed by R3 that allows for the seamless settlement of payment obligations on the Corda blockchain platform.
Initially, R3 opted to implement XRP as the first settlement asset supported by Corda Settler. The token was selected primarily for its technical ease and efficiency, making it an ideal choice for this early phase of the project.
The decision to incorporate XRP attracted significant attention, particularly due to the history between R3 and Ripple, two companies previously in legal disputes.
The collaboration in the Corda Settler project led to speculation that R3 and Ripple had resolved their differences, with many viewing this as a major step toward collaboration between the two blockchains.
However, the speaker clarified that while the asset was chosen for its simplicity and effectiveness as an initial solution, it did not signal any deeper partnership between R3 and Ripple.
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SWIFT GPI Integration
In addition to supporting XRP, the Corda Settler module also integrates with SWIFT’s GPI network, as highlighted by SMQKE’s tweet. SWIFT GPI is an enhancement to the SWIFT system used by financial institutions worldwide, offering faster, more transparent cross-border payments.
The integration between Corda Settler and SWIFT GPI enables a more comprehensive solution for settling international payment obligations within the Corda ecosystem.
According to the video, the decision to incorporate SWIFT GPI into Corda Settler represents a major milestone for R3. The integration allows Corda users to settle transactions using SWIFT’s GPI system, further broadening the scope of the Corda Settler and enhancing its interoperability.
This feature is particularly valuable for financial institutions that rely on SWIFT’s established infrastructure but also want to explore blockchain-based solutions.
The integration of XRP and SWIFT GPI within the Corda Settler platform shows R3’s commitment to bridging the gap between traditional financial institutions and blockchain technology.
By supporting both SWIFT GPI, a widely-used system in traditional banking, and XRP, a cryptocurrency designed for fast cross-border payments, Corda Settler offers institutions the flexibility to choose the most suitable payment method for their specific needs.
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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