Stellar, Cardano, Hedera, SWIFT, FedNow: The Battle for Supremacy in a Trillion-Dollar Market

• The cross-border payment industry is expected to reach $250 trillion by 2027 as Ripple, Stellar, Swift, etc race for dominance. 

• It is reported that this industry grew by $25 trillion to reach $150 trillion between 2018 to 2022. 

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The battle for supremacy in the cross-border payment industry hits a new level as Stellar, Ripple, Cardano, Hedera, Swift and FedNow double down efforts with innovations. According to a report, the industry grew by $25 trillion to reach over $150 trillion between 2018 to 2022. This is almost the entire size of the global technology industry in 2023. As disclosed in a publication by Crypto News Flash, stakeholders expect the industry to grow to $250 trillion by 2027. Other reports link the pace of growth to the investments directed to trade and infrastructure projects like the African Continental Free Trade Area and China’s Belt and Road Initiative. This reportedly adds 10% of the annual growth in cross-border payments from emerging economies.

According to Tanja Haase, Head of Swift Go, the bank is still the “go-to” avenue for all cross-border related transactions as disclosed by a survey that considered the input of 4000 consumers and SMEs. 

Swift’s effort to lead the industry was recently seen in its Central Bank Digital Currency (CBDC) interoperability experiment which has entered an advanced stage. As disclosed by the company, more than 30 financial institutions experimented with the solution. 

The beta solution has taken its next step, with three central banks and monetary authorities, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan, integrating the solution with their infrastructure for direct testing.

Ripple, FedNow and Stellar Revolutionize the Cross-border Payment Industry

While Swift strives to dominate the industry, it also seeks to ensure the coexistence of CBDC, fiat and other payment systems. Interestingly, Swift faces fierce competition from Ripple and Stellar Lumens. Recently, Ripple announced a strategic partnership with global e-commerce, Amazon, to integrate XRP into its payment operations. 

Experts believe that the dominant involvement of XRP in cross-border payment could drive the token price to $500 by 2027. Similarly, Stellar’s focus on faster and cost-effective transactions positions it as a fierce contender to lead the Industry. 

What sets the Stellar network apart from other blockchains is its interoperability. The Stellar network can interoperate with other blockchains and traditional financial infrastructure via regulated financial institutions called anchors.  can issue assets and/or provide on/off ramps onto the Stellar network.

Hedera, another blockchain project, appears to be one of the fastest-rising platforms with immediate settlement time and the ability to accommodate 10,000 transactions per second. Transaction fees on Hedera cost less than 1¢ USD, and the fees are fixed.

Apart from these projects, FedNow, an instant payment system launched in 2023 by the US Federal Reserve is already growing its presence within the ecosystem. Right after the launch, 35 banks and credit unions announced their support together with the Treasury Department’s Bureau of Fiscal Service. Although the sign-up is optional, the service is available to more than 10,000 US financial institutions. It is also the first American real-time payment system. 

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