Crypto researcher SMQKE has drawn attention to what he describes as the largest untapped opportunity for XRP and XLM, focusing on their roles in the global market for institutional cross-border transactions.
Institutional payments offer larger growth opportunities
SMQKE asserted that the true value proposition for both XRP and XLM lies well beyond consumer remittances. He emphasized that banks and financial institutions move significant sums internationally each day, presenting a much larger market for blockchain platforms designed for business-to-business settlements.
He expressed confidence in the platforms by stating,
XRP and XLM will target the big money. The big money is in cross-border payments; that’s why Ripple and Stellar exist. XRP plus XLM equals big money. Watch.
To further illustrate his point, SMQKE shared a video elaborating on the distinct market focus for Ripple and Stellar. Rather than replacing established retail money transfer firms, both networks are designed to facilitate high-value business payments between major financial institutions.
Ripple is the company behind the XRP ledger, specializing in solutions for rapid, low-cost cross-border transactions. Stellar develops the XLM network, aiming to connect financial institutions and enable fast, affordable transfers worldwide.
Mini dictionary: SMQKE – A social media-based cryptocurrency researcher known for sharing market insights and analysis with a focus on blockchain payment technologies.
Video highlights backend focus of Ripple and Stellar
In the video shared by SMQKE, the speaker distinguishes between consumer remittance businesses such as Western Union and blockchain-based networks like Ripple and Stellar. The explanation emphasizes that retail money transfer services are unlikely to disappear; instead, these firms are expected to gradually upgrade their back-end infrastructure with blockchain solutions.
The video states that business-to-business payments across borders represent a substantially greater financial opportunity compared to consumer remittances. High-volume payments between institutions currently incur significant costs and inefficiencies, which blockchain tech could address.
Ripple and Stellar are portrayed as backend networks designed for institutional participants. The video notes that these platforms enable banks and major firms to settle international transactions more efficiently, reducing fees and settlement times compared to traditional systems. The ability to move transaction data quickly, even ahead of funds themselves, was highlighted as a key advantage of distributed ledger technology.
Rather than focusing on people sending small amounts to family members, the true opportunity for blockchain networks lies in enabling banks to transfer large sums across borders in a faster and more cost-effective manner.
Ripple’s permissioned network vs. Bitcoin’s open ledger
The video also compares the architectures of Ripple and Bitcoin, noting that Bitcoin operates as an open, permissionless ledger where anyone can participate without approval. Ripple, however, is described as a permissioned network, allowing only approved institutions to join and transact.
In practical terms, an international payment over the Ripple network typically involves both sending and receiving banks that have agreed to use XRP as a settlement medium via trusted validator nodes within the network. This institutional approach is aimed at meeting compliance, privacy, and regulatory requirements.
| Feature | Ripple (XRP) | Stellar (XLM) | Bitcoin (BTC) |
|---|---|---|---|
| Network type | Permissioned | Permissionless | Permissionless |
| Main users | Banks, financial institutions | Banks, institutions, remittance providers | General public, individuals |
| Primary use case | Institutional cross-border payments | Cross-border payments, connectivity | Peer-to-peer value transfer |
SMQKE maintains that XRP and XLM are well-positioned to capitalize on the trend toward swifter, more dependable global payments, particularly within institutional corridors.
