Ripple Partner and Wells Fargo Collaborate on SWIFT Replacement

Tobias Lewis

Ripple partner company, The Clearing House, partners with Wells Fargo to challenge SWIFT’s dominance with new instant payment system

The Clearing House, a well-known partner of Ripple, partners with Wells Fargo on cross-border payments system“specifically designed to support digital commerce”, which could potentially replace SWIFT.

The system, known as Real Time Payments (RTP) Service, is said to facilitate the real-time transfer of digital currencies between eligible accounts at Wells Fargo. A new online service agreement with Wells Fargo has been shared online detailing how this project could directly challenge SWIFT’s dominance:

The Clearing House has declared that RTP service is specifically designed “for the digital, mobile way we live and work today.” In particular, unlike competing payment systems, the RTP system includes real-time messaging, instant confirmation and a secure two-way messaging service. Wire transfers would be instant and final and offer the account holder maximum control, just like “cash”.

Nevertheless, at the moment it appears that RTP service at Wells Fargo is being severely restricted with a one-time payment limit of $5,000, despite The Clearing House indicating elsewhere that the system operates within a $100,000 transfer limit. Wells Fargo also reserves the right to discontinue, change, or suspend access to the RTP Service at any time.

Ultimately, however, this is further proof that digital currencies are increasingly being adopted by mainstream financial institutions for the time being. Major banks recognize the need to improve trade flow in the digital economy with custom systems designed for that purpose. Indeed, despite some hesitation, Wells Fargo specifically: announced that it “reserves the right to add additional eligible accounts” to the RTP service.

Leave a Reply

Your email address will not be published.