XRP Could Power Fedwire’s $1 Quadrillion Settlements

XRP is once again capturing the spotlight as speculation grows around its potential involvement in the U.S. Federal Reserve’s Fedwire settlement system. A prominent XRP-focused researcher, SMQKE, recently pointed out XRP’s relevance to this high-value payment infrastructure, sparking new discussions about the token’s institutional utility.

According to insights shared by SMQKE, Fedwire—the real-time gross settlement (RTGS) service operated by the Federal Reserve—conducts annual settlements exceeding $1 quadrillion. This massive figure underscores the importance of Fedwire, which processes amounts comparable to the entire U.S. GDP every few days. Such a volume dwarfs traditional payment networks like ACH, cementing Fedwire’s status as a critical component of global finance.

Ripple’s Strategic Ties Via Finastra and Volante

Ripple, the company behind XRP, has formed significant alliances with tech vendors Finastra and Volante Technologies—two companies that play pivotal roles in the Fedwire ecosystem. These firms not only support Fedwire infrastructure but are also recognized Ripple partners.

Back in 2019, Ripple teamed up with Finastra to integrate its blockchain-based solutions into Finastra’s payment platforms. This collaboration opened up RippleNet’s vast network—comprising over 200 financial institutions—to Finastra’s clients, and vice versa. The synergy expanded Ripple’s reach and solidified its presence in the global fintech ecosystem.

Meanwhile, Volante Technologies, which has worked with Ripple since 2015, offers Fedwire connectivity through cloud services. The company has confirmed that its clients can leverage XRP to power cross-border and domestic transactions, further enhancing the token’s functionality within essential payment systems.

ISO 20022 Compliance Strengthens XRP’s Position

In May 2024, both Finastra and Volante achieved a substantial milestone by obtaining ISO 20022 certification from the Federal Reserve. This compliance mark denotes alignment with the global messaging standard increasingly adopted by major financial institutions for streamlined, interoperable transactions.

Finastra’s certified platforms include Payments To Go, Global PAYplus, PAYplus USA, and PAYplus Connect. Volante received recognition for its wire payment processing solutions, all tuned for compatibility with Fedwire. These certifications ensure secure, future-ready payment processing via cloud-based methods or full system integration.

Crucially, both companies’ platforms maintain built-in support for Ripple’s technology. Ripple itself has also achieved ISO 20022 recognition, adding legitimacy to the idea that XRP could play a part in mainstream financial rails.

XRP’s Growing Appeal for Institutional-Powered Payment Systems

The connection between Ripple, its partner infrastructure providers, and Fedwire hints at a profound shift: XRP may soon be interoperable with the very core of America’s banking mechanisms. Given its inherent benefits—fast settlement, low fees, and scalability—XRP stands as a strong candidate to support these essential financial transactions.

As the U.S. payment ecosystem modernizes toward real-time settlement via systems like FedNow and RTP (Real-Time Payments), Ripple and XRP are strategically positioned to serve as a bridge between established financial systems and blockchain technologies. This symbiosis could fundamentally enhance how value is transferred in the digital age.

If XRP were to serve even a modest role within Fedwire’s astronomical $1 quadrillion annual transaction flows, it could unlock a level of utility far beyond its current use cases. This possibility aligns with the belief of many XRP supporters, who argue that XRP was designed from the ground up with precisely these financial systems in mind.

Related: Expert Advice: Sell XRP If You’re Confused

Adding to the anticipation, Ripple CEO Brad Garlinghouse recently projected that XRP could manage up to 14% of SWIFT’s massive transaction volume by 2030—further reinforcing the idea that the token’s full potential remains largely untapped but increasingly within reach.