Ripple (XRP) and Stellar (XLM) Is the Next Dominant Duopoly In Financial Services. Here's why

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As blockchain adoption in the financial sector continues to develop, discussions around which networks could become foundational to future payment infrastructure are gaining momentum.

Crypto researcher SMQKE recently drew attention to Ripple and Stellar, arguing that both projects are increasingly positioned to dominate blockchain-based financial services, particularly in cross-border payments and correspondent banking.

In the post, SMQKE compared the long-term potential of Ripple and Stellar to the dominant role Visa and Mastercard hold in the traditional payments industry.

The researcher presented both blockchain networks as infrastructure-focused systems that are actively pursuing institutional integration rather than relying solely on speculative cryptocurrency activity.

The comparison centered on the idea that Ripple and Stellar already occupy a unique position in the blockchain industry due to their shared focus on international settlements, banking connectivity, and financial interoperability.

According to SMQKE, this positioning could allow both networks to emerge as the strongest duopoly in digital financial services if institutional adoption continues to expand.

Academic Research Highlights Ripple and Stellar’s Financial Focus

To support the argument, SMQKE shared excerpts from research publications examining the role of blockchain technology in payment systems and remittance infrastructure. The referenced material focused heavily on Ripple and Stellar as two of the most prominent blockchain projects targeting cross-border financial services.

One section explained that the two networks pursue similar objectives through different operational approaches. The publication stated that Ripple primarily focused on partnerships with banks and financial institutions worldwide to reduce dependence on intermediaries for international transfers. By using blockchain infrastructure, Ripple aims to make transactions settle more quickly and efficiently.

The same research also noted Ripple’s institutional reach, noting that the company had already formed relationships with more than 100 banks globally at the time of the publication. In contrast, Stellar was described as focusing more heavily on underserved and underbanked regions by creating lower-cost access to global financial systems.

Another highlighted passage discussed how both ecosystems use their native digital assets during international transfers. According to the research, transactions can move through XRP or XLM as bridge assets before converting into local currencies within seconds.

The papers suggested that this mechanism enables both networks to improve transaction efficiency while lowering settlement friction in cross-border payments.

Growing Attention on Correspondent Banking Solutions

SMQKE also emphasized another research section examining correspondent banking infrastructure, an area often viewed as one of the largest opportunities for blockchain integration within global finance.

The publication stated that Ripple and Stellar were among the most frequently cited blockchain applications within academic literature focused on remittances and payment systems. The paper further noted that the two projects stood out, directly developing distributed ledger technology solutions for correspondent banking networks.

According to the researchers, Ripple had already established a significant track record through partnerships with banks and money transfer operators, while Stellar’s correspondent banking initiatives were still evolving. The paper added that Ripple became the primary subject of the study due to the availability of institutional partnership data and empirical material connected to the company’s operations.

These observations formed a major part of SMQKE’s argument that Ripple and Stellar are separating themselves from many other blockchain projects by focusing on real-world financial infrastructure.

Ripple and Stellar’s Institutional Direction

Rather than positioning themselves as competitors to retail payment apps or speculative crypto platforms, Ripple and Stellar direct attention toward institutional finance, remittances, and banking efficiency. SMQKE used the academic references to reinforce the view that both projects are attempting to establish themselves as core settlement layers for international value transfer.

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