Cryptocurrency researcher SMQKE has emphasized what he considers the most significant opportunity for Ripple’s XRP and Stellar’s XLM, pointing to the booming institutional cross-border payments sector as their prime target—rather than the traditional market of consumer remittances.
Focus shifts to institutional transactions
SMQKE stated that the real potential for both XRP and XLM lies in handling large-scale international transactions conducted by banks and financial institutions, not in facilitating everyday money transfers for individual users.
He summarized this view through a social media post, noting, “XRP and XLM will target the BIG money,” and added, “The BIG MONEY is in cross-border payments—that’s why we have Ripple and Stellar.”
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.
To underline his point, SMQKE linked to a video that examines the design of Ripple and Stellar. The video asserts that these platforms address the needs of large-scale business payment flows, rather than seeking to replace companies specializing in retail-facing remittances.
Ripple is the fintech company behind XRP, focused on providing payment solutions to the banking sector. Stellar, created by the Stellar Development Foundation, aims to connect global financial infrastructure through its native asset XLM.
Mini dictionary: SMQKE, an active cryptocurrency researcher and commentator known for sharing market analyses and insights on X (formerly Twitter).
Video contrasts consumer and business payments
In the video, the presenter argues that the rise of blockchain technology will not eliminate companies such as Western Union, which remain relevant for serving individual consumers. Instead, these firms are likely to adopt new technologies while continuing to operate in their established markets.
The presenter identifies business-to-business cross-border transactions as a far greater opportunity in terms of transaction volume and value. According to the video, existing financial infrastructure leaves these high-value transfers burdened by excessive costs and latency, suggesting that blockchain-powered payment networks could make these processes more efficient for institutions.
Ripple and Stellar, according to the explanation, are designed specifically to facilitate backend transactions between banks and financial companies—rather than focusing directly on end users sending money to family members abroad. The discussion notes that these networks support interbank transfers, streamlining settlements and adding transparency for participants.
The biggest opportunity for Ripple and Stellar lies in transforming institutional cross-border transactions, offering faster and cheaper alternatives to legacy systems like correspondent banking.
In the same context, the presenter highlights the ongoing relevance of correspondent banking. While this system remains integral for moving money internationally, modern payment technologies now allow transaction data to move faster than capital flows. Distributed ledger technology is described as a breakthrough enabling much quicker settlements between institutions.
Ripple’s permissioned model versus Bitcoin
The video further differentiates Ripple’s approach from Bitcoin’s architecture. As explained, Bitcoin operates through an entirely open, permissionless ledger, allowing anyone to participate without external approval.
In contrast, Ripple’s network is described as permissioned, admitting only approved institutions as participants. These financial organizations recognize one another through established validator nodes and interact within a controlled environment.
The speaker uses the example of an international funds transfer, where both the sending and receiving entities are banks operating within the Ripple ecosystem, with transactions verified and executed on its distributed ledger. The goal is to facilitate institutional transactions with increased speed, efficiency, and transparency.
By sharing these insights, SMQKE reiterates his stance that XRP and XLM are strategically positioned to benefit from the growing demand among banks and businesses for modernized cross-border payment solutions.
| Network | Type | Main Use Case | Participants |
|---|---|---|---|
| Ripple | Permissioned | Institutional payments | Banks, financial firms |
| Bitcoin | Permissionless | Open value transfer | Anyone |
| Stellar | Open network with regulated anchoring | Institutional and individual transfers | Financial entities, individuals |
