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Interesting read. https://www.americanbanker.com/news/is-this-swifts-answer-to-ripple “If you are a bank in Oklahoma and you need to make a payment to Mexico or Vietnam, unless you have relationships with banks in those countries already, you’re going to need an intermediary bank,” he said. “If the two banks don’t have the relevant KYC information, they’re not allowed by their compliance departments to send or receive payments between each other because they don’t know each other. In this situation, the only way to get to get a payment to a bank in Vietnam is to go through a correspondent bank. Whether that’s using SWIFT or another provider, it has nothing to do with the technology, it’s to do with legal, contractual and compliance agreements between banks.” That is why the connections between correspondent banks are necessary and technology cannot remove them or even change them much, Raymaekers said. Agreement with R3 At the end of January, Swift announced that it is partnering with R3 to have GPI Link work with its Corda Settler distributed ledger. News accounts gave the impression that the giant payment network was embracing the idea that faster distributed-ledger technology will replace the framework of correspondent banks, nostro accounts, and the store-and-forward messages that Swift maintains, and that Swift was going to use XRP, the digital currency of Ripple. The price of XRP shot up. However, none of this is true. Companies use R3’s Corda Settler to trade among one another. R3 is adding Swift’s GPI to the options Corda-Settler-using companies can turn to when they want to initiate a payment, besides using XRP. The payment itself will settle between banks as usual over the Swift network and the corporates will be able to track the payments. So this is actually a win for Swift over Ripple.