Crypto analyst SMQKE recently identified what he considers the main opportunity for XRP and XLM, emphasizing their roles in the evolving landscape of global financial transactions. According to SMQKE, the true growth potential for these digital assets lies not in consumer remittances but in institutional cross-border payments, a market where banks and financial institutions move substantial sums across national borders daily.
Focus on institutional payments
Rather than focusing on the smaller consumer remittance market, SMQKE highlighted the significance of large-scale business transactions. He stated that the “big money” is stored in cross-border payments between banks and corporations, an area currently burdened by slow and costly legacy systems.
In a recent social media post, SMQKE wrote that XRP and XLM are designed to capture these high-value flows. He explained, “XRP and XLM will target the BIG money. The BIG MONEY is in cross-border payments — that’s why we have Ripple and Stellar. XRP + XLM = Big Money. Watch.”
XRP and XLM are targeting significant institutional flows, emphasizing that these networks exist to serve the needs of large financial organizations moving funds internationally.
To support his view, SMQKE shared a video illustrating how Ripple and Stellar differ from traditional money transfer providers by focusing on backend infrastructure needed for institutional payments instead of consumer-focused services.
Mini dictionary: SMQKE is a digital asset and blockchain researcher who regularly publishes analyses on major projects, particularly focusing on the applications of distributed ledger technology in the global payments sector.
Ripple and Stellar’s approach to financial infrastructure
The video addressed the ongoing relevance of established remittance providers like Western Union, suggesting that these companies might adapt blockchain technologies but will remain key players in their markets. However, it argued that the larger commercial opportunity is tied to the needs of institutions handling high-volume, cross-border transactions.
The speaker explained that networks such as Ripple and Stellar are engineered to enable secure and rapid settlements between financial institutions. These platforms focus on optimizing the underlying infrastructure for the transfer of funds rather than directly replacing traditional companies serving individual consumers.
The video also touched on the role of correspondent banks, noting that they still provide vital connections for international transfers. However, advances in distributed ledger technology allow transaction data to move faster, while settlement between banks can occur more efficiently within blockchain-based systems.
Comparison with Bitcoin
A further distinction was drawn between Ripple and Bitcoin. According to the explanation, Bitcoin operates as a decentralized and open system where any user can participate, whereas Ripple’s network is permissioned and requires participants to be approved financial institutions.
In this structure, international payments involve banks acting as intermediaries, transferring funds via approved validator nodes within the Ripple network. This controlled approach aims to address compliance and integration needs of existing financial organizations.
Through this presentation and his online posts, SMQKE reiterated his stance that XRP and XLM are positioned to meet the demand for faster and more efficient institutional payments worldwide.
