- A new strategic partnership between DXC Technology and Ripple aims to bring traditional banking infrastructures up to date.
- DXC integrates Ripple’s institutional blockchain technology into its core “Hogan” banking structure, used by major banks worldwide.
The new cooperation is intended to enable banks to use blockchain-based payment systems and digital assets without having to radically rebuild their existing systems.
Sea Press release The aim is to create a technological basis that corresponds to the state of the blockchain, but is “downwardly compatible” enough to continue to control custody, RWA tokenization and programmable payments directly from the core banking platform in the future.
A major hurdle has been removed for banks that previously shied away from high integration costs. DXC acts as an “interface” between traditional IT and modern blockchain infrastructure; and Ripple gains access to a market that was previously virtually monopolized – the core systems of major banks. This development is likely to significantly accelerate the spread of blockchain technologies in the institutional environment.
Impact on Ripple, XRP and the crypto market
Although the cooperation does not explicitly require the use of XRP tokens, it still has an impact on its use. Ripple is increasingly becoming a provider of institutional infrastructure, and any expansion of this infrastructure indirectly strengthens the XRP system. Banks that use Ripple technology for international payments and liquidity management in the future could opt for XRP-based applications in the long term, especially if efficiency and cost savings are the result.
The crypto market reacts to such developments because institutions are seen as a stability factor. The partnership will therefore increase trust in blockchain applications and advance the discussion about the role of digital assets in the global financial system.
Digitalized financial infrastructure is getting closer
The cooperation between DXC and Ripple shows that blockchain technology has finally arrived in the traditional banking world. Banks gain access to new, beneficial functionality without replacing their core systems, while Ripple consolidates its position as a technology provider for institutional applications.
Digital assets and tokenized financial instruments continue to make their way into the regulated financial world. The partnership could thus prove to be the initial spark that triggers the transition to a fully digitalized, more efficient and globally networked financial infrastructure.
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