Institutions Flock to Blockchain for Cross-Border Payments

Institutions are increasingly using blockchain technology for cross-border payments and settlements. Mastercard has integrated XRP's ledger into its card settlement system, while MoneyGram chose Stellar (XLM) to issue a dollar stablecoin. The UK Treasury endorsed Hedera (HBAR) for FX collateral.

Ripple's XRP is the largest of the three payment cryptos, with a market cap of $68.81 billion. It serves as a bridge asset, allowing firms to convert currencies quickly and efficiently. Stellar's XLM, on the other hand, issues stablecoins that can be moved across borders without the need for intermediaries.

Hedera (HBAR) is an enterprise ledger governed by a council of large companies, including Google, IBM, Boeing, and FedEx. It tokenizes assets and moves collateral rather than settling payments. The three coins have seen significant price drops over the past year, with XRP down 65%, XLM at 59%, and HBAR at 75%.

Swift, a major player in cross-border payments, bypassed all three networks and built its own blockchain ledger on Consensys' Linea. This move has implications for the adoption of public blockchains in the financial industry.