Ripple Integrates XRP Into Core Banking
Ripple is integrating its XRP payment solutions into core banking systems through a partnership with IT services firm DXC Technology. The collaboration aims to bridge the gap between legacy financial infrastructure and blockchain-based payments.
This partnership directly targets DXC's Hogan core banking platform, a legacy system used by major financial institutions to manage over $5 trillion in deposits across 300 million accounts globally. The strategy avoids a costly "rip-and-replace" of existing infrastructure, instead layering Ripple's technology on top to provide what DXC calls the "last-mile connectivity" between regulated banking and digital asset platforms. The integration provides banks with access to Ripple Payments (formerly On-Demand Liquidity) and Ripple Custody. This allows institutions to offer services like digital asset custody, tokenization, and streamlined cross-border payments without fundamentally altering their mission-critical systems. The core value proposition is a direct challenge to the SWIFT system. While traditional international transfers can take 1-5 business days, transactions on the XRP Ledger settle in 3-5 seconds. This speed is designed to reduce the need for pre-funded nostro/vostro accounts, freeing up trapped capital for banks. XRP's primary function in this system is to act as a bridge currency, enabling instant conversion between different fiat currencies without requiring direct exchange between the two. Major institutions like Japan's SBI Holdings, Santander, and PNC Bank already utilize Ripple's network for faster international payments. This move is part of Ripple's broader strategy to build a comprehensive institutional-grade infrastructure. The company is also rolling out Ripple USD (RLUSD), a U.S. dollar-backed stablecoin, and has appointed BNY Mellon as its primary custodian to further build trust with traditional financial players.
