XRP dropped 2.2% over a 24-hour period, bringing the token into negative territory after a 49.4% surge over the span of seven days.
The recent downward movement coincides with developments in blockchain-based payment systems by major commercial banks aimed at addressing pre-funding requirements. JPMorgan Chase has expanded its efforts through Kinexys, notably broadening its Blockchain Deposit Accounts in June to support eight currencies including USD, EUR, GBP, AUD, HKD, JPY, RMB, and SGD. This system allows customers to move balances around the clock and execute onchain currency swaps without needing to purchase a separate bridge cryptocurrency.
Similarly, Citigroup operates a 24/7 USD Clearing network spanning more than 250 banks across over 40 markets, alongside Citi Token Services, which moves tokenized commercial-bank deposits via blockchain infrastructure. While the XRP Ledger features a settlement range of three to five seconds—faster than alternative banking liquidity solutions—institutions may prioritize utilizing cash already held within regulated banking entities.
Meanwhile, financial messaging network SWIFT is addressing the fragmentation of digital deposits, where individual bank tokens remain limited to specific institutional ecosystems. On August 19, HSBC and Standard Chartered completed an international transaction using the SWIFT blockchain ledger. While the banks stored deposit tokens on their own infrastructure, SWIFT managed the messaging, obligation alignment, and payment calculations before completing the final transfer through traditional payment systems.
Unlike models reliant on a shared cryptocurrency, SWIFT's approach utilizes interoperable tokens issued by individual banks across different platforms. The initiative is expanding beyond the initial pair of institutions, with SWIFT reporting that 17 banks across six continents are preparing for live tokenized-deposit transactions. HSBC currently offers its Tokenized Deposit Service across six markets supporting multiple currencies including CNH, HKD, SGD, EUR, GBP, USD, and AED.
