Bridging TradFi and DeFi: the future of cross-border payments with Ripple

As traditional finance (TradFi) and decentralized finance (DeFi) begin to converge, the cross-border payments landscape is undergoing a significant transformation.

In this interview, Cassie Craddock, Managing Director, UK & Europe at Ripple, explores how tokenization, smart contracts, and stablecoins are reshaping the global value exchange - and what Ripple is doing to lead this change.

The convergence of TradFi and DeFi is gaining momentum. What’s driving this shift, and who are the key players advocating for this alignment?

The crypto industry has hit an inflection point as the technology matures and attention shifts to real-world utility and institutional adoption. One of the biggest drivers of convergence between TradFi and DeFi is the rise of stablecoin utility.

Stablecoins enable a smooth interface between traditional financial systems and the emerging digital economy, paving the way for more seamless global trade and finance. We’ve used stablecoins alongside XRP within our cross-border payments flows for some time and saw a clear need for a stablecoin with built-in utility and trust. That’s why we launched our USD-backed stablecoin, RLUSD, in December 2024 under a New York Company Trust Charter, which ensures a much higher level of regulatory oversight and compliance (such as bankruptcy-remote reserves). Unlike other stablecoins that are geared towards retail use, RLUSD is designed to meet the rigorous expectations of leading financial institutions.

Another driver is tokenization. By representing real-world assets as digital tokens on blockchain, tokenization unlocks liquidity, enhances accessibility, and fosters a more efficient exchange of value. It increases transparency and reduces the complexity of asset transfer and management, setting a precedent for a more inclusive and borderless financial ecosystem. This is evident in real-world use-cases, such as the Dubai Land Department’s (DLD) pioneering real estate tokenization project, which sees property title deeds being tokenized on the XRP Ledger. Ripple’s highly secure custody software is also being used by the pilot’s tokenization provider Ctrl Alt.

The dominoes are starting to fall. Crypto is now gaining significant traction amongst traditional financial institutions, whether that’s Franklin Templeton, BlackRock or Aberdeen, as its widespread utility and benefits are clear. As global regulation continues to mature, DeFi’s influence on TradFi looks set to grow and grow.

Tokenization and smart contracts are often cited as game-changers. How exactly do these technologies enhance cross-border payment systems, and how is Ripple incorporating them into its solutions?

Tokenization is transforming cross-border payment systems by making financial assets programmable, interoperable, and accessible 24/7. It has begun to transform key markets like FX, commodities, bonds, and ETFs by unlocking liquidity, fractional ownership, and broader accessibility. A recent report by Ripple and BCG predicted that the overall market for tokenized real-world assets will increase from around USD 0.6 trillion today to USD 18.9 trillion by 2033.

Ripple is at the forefront of supporting tokenization on the XRP Ledger (XRPL), a leading blockchain designed for enterprise use cases. Recent partnerships demonstrate this in practice. For example, companies like Archax, the UK's first FCA-regulated digital asset exchange, have onboarded institutions like Aberdeen to tokenize money market funds onto the XRPL - streamlining access to global liquidity pools.

Smart contracts are also game-changers for cross border payments, as they automate transactions once pre-defined conditions are met, removing the need for intermediaries - while also reducing both costs and delays. Ripple is enhancing its capabilities by integrating EVM-compatible sidechains within the XRPL, allowing developers to deploy smart contracts that leverage speed and low fees for seamless cross-border payment solutions.

Stablecoins are gaining traction. How might they disrupt or improve the traditional FX market?

Stablecoins are poised to transform the FX market by enabling real-time, 24/7 cross-border payments, eliminating intermediaries and reducing costs, friction, and delays inherent in traditional systems. As the market matures, we’re seeing consolidation around issuers with the regulatory credibility, compliance standards, and infrastructure needed to support enterprise-grade adoption and set a new benchmark for cross-border transactions.

Stablecoins will continue to play a growing role in high-value institutional use cases like cross-border payments, on-chain collateral, and treasury optimisation. These are areas where instant settlement and interoperability between fiat and digital assets can unlock new efficiencies and reduce operational costs.

Ripple’s own stablecoin, RLUSD, is designed with these exact enterprise demands in mind. Built on the XRPL, it combines speed, scalability, and transparency with best-in-class regulatory compliance, positioning it as a powerful tool in reshaping FX settlement and cross-border flows.

Ultimately, stablecoins won’t just complement the FX market; they’ll help modernise it, making it more accessible, efficient, and globally connected.

Despite the opportunities, what are the biggest challenges to achieving truly fast, cost-effective, and secure cross-border payments at scale?

Today’s payments infrastructure, especially those across borders, still relies on legacy technology that can result in inefficiencies, poor user experiences, and high transaction fees for customers. These systems often introduce delays, risk, and a lack of transparency.

However, digital assets and blockchain technology have the potential to take the payments industry to the next level and transform how the unbanked as well as underserved businesses, access more efficient and affordable payment services.

Cross-border payments are the pioneering application of crypto and serve as the gateway to a new world of possibilities in financial services. There are already clear use-cases and benefits being delivered, providing unrivalled speed, transparency, efficiency, and cost savings.

Achieving fast, cost-effective, and secure cross-border payments at scale relies on businesses leaning into new transformative technologies to modernise the payments ecosystem. Regulation that supports innovation and drives greater accessibility will allow this transformation to thrive at scale.

Looking ahead, what role will banks play in this evolving landscape? How can they adapt and stay relevant in a world moving toward programmable and decentralised money?

We’ve already seen how blockchain technology is making significant in-roads within traditional banking. One of the most prominent examples is the growing adoption of stablecoins, which are now gaining traction as powerful tools for enabling faster, more efficient cross-border payments.

Major global banks like JP Morgan and Societe Generale have announced their own stablecoin initiatives, signalling a pivotal shift in how traditional finance approaches digital assets. Ripple has just announced that BNY Mellon, America’s oldest bank, will be the primary custodian for RLUSD’s reserves in a further demonstration of the interest, utility, and long-term acceptance of digital assets within financial services.

These moves underscore a broader industry recognition that blockchain-based solutions can enhance liquidity, improve settlement times, and reduce costs. As regulatory clarity around stablecoins improves and licensing frameworks mature, traditional banks are set to play a key role in legitimising and scaling these technologies.

To remain competitive, banks must do more than adopt new technologies - they must reimagine their business models. This includes diversifying revenue streams, integrating programmable money into their core services, and offering more personalised, efficient, and borderless financial products.

About the author

Cassie is Managing Director, UK & Europe at Ripple. She is a seasoned fintech leader who specialises in working with global financial services companies to enable them to drive innovation, growth, and efficiencies through new technologies, with a particular focus on blockchain, digital assets, and payment infrastructure. Cassie’s international expertise has been built up across a range of cutting-edge fintechs, including French startup Mangopay and payments companies Ixaris and Veridu.

 

 

About Ripple

Ripple is the leading provider of digital asset infrastructure for financial institutions -delivering simple, compliant, reliable software that unlocks efficiencies, reduces friction, and enhances innovation in global finance. With a proven track record working with regulators and policymakers around the world, Ripple’s payments, custody, and stablecoin solutions are pioneering the digital asset economy -building credibility and trust in enterprise blockchain.