Ripple Tied to FedNow Service Providers: A Potential Game-Changer for Liquidity

• Ripple Labs is closely associated with firms that use the FedNow service.
• With the FedNow expansion plans, Ripple and XRP may benefit massively.

Ripple Labs, a blockchain payments firm known to facilitate fast and efficient cross-border payments, is currently making waves in the crypto space. The recent attention on Ripple follows research from FLRMOON, which suggests the firm has ties with FedNow Service Providers. 

According to the research, Ripple’s collaboration with FedNow could potentially open up hundreds of trillions of dollars worldwide.

Ripple’s Connection with FedNow

FedNow, developed by the US Central Bank and Federal Reserve, is an instant payment service that allows individuals and businesses to send and receive payments within seconds across the United States. The service is gaining traction in the US, with over 1,200 registered live participants. To expand further, FedNow plans to integrate 10,000 banks and institutions.

Ripple is not officially listed as a service provider on FedNow, likely due to its legal issues with the SEC. However, research from FLRMOON has noted that Ripple is affiliated with FedNow. 

According to the research, 27 of the 37 FedNow-certified service providers have some connection to Ripple. These service providers are either direct Ripple partners or are partners with Ripple partners.

Ripple’s indirect involvement with FedNow comes from the company’s business model, which prioritizes integration with financial service firms and software providers over individual banks. This approach makes it easy for Ripple’s technology to reach various institutions via third-party providers.

For instance, ACI Worldwide, one of the service providers spotlighted in the research, supports 9% of global SWIFT traffic and processes 30% of SWIFT payments in the US. The company has previously confirmed that its infrastructure supports payment schemes that integrate with Ripple’s technology.

Meanwhile, Aptys Solutions is a FedNow-certified provider that works with multiple Ripple connections. The firm is a major partner of the U.S. Faster Payments Council. Another top partner is Jack Henry, who has partnerships with several firms integrating Ripple’s technology. 

Alacriti is another FedNow-certified provider with Ripple connections. The company partners with The Clearing House, a financial entity composed of multiple Ripple Partners. Additionally, the business collaborates with AWS, which already has a collaboration with Ripple.

Other direct and indirect Ripple partners linked to FedNow’s payment ecosystem include BNY Mellon, C&M Software, CGI, COCC, DCI, Finzly, and others.

Implication for XRPL’s Liquidity

The research from FLRMOON suggests that FedNow’s payment framework could leverage Ripple’s technology even without being a listed provider. Financial institutions may use Ripple’s blockchain solutions through FedNow’s service providers if this collaboration holds.

This collaboration is not impossible since Ripple has structured its business model to integrate at the software and infrastructure levels. If the connections translate into actual usage, the XRP Ledger ecosystem could eventually see a dramatic increase in liquidity. 

Moreover, FedNow’s goal of reaching 10,000 banks suggests that Ripple’s technology might permit trillion-dollar transactions. As noted in our earlier post, Ripple believes the FedNow system will benefit XRP.