XRP News Today:

SWIFT has confirmed that it will support assets like XRP but will not directly compete with Ripple, according to recent developments and internal assessments. This position marks a shift from prior skepticism and aligns with SWIFT’s ongoing efforts to integrate blockchain technologies into its existing infrastructure. In a public statement, SWIFT acknowledged the growing relevance of public blockchains and emphasized the need to assess how they can complement its messaging network. These efforts include trials with the XRP Ledger and Hedera, all under the framework of ISO 20022 standards, which are being adopted globally for financial messaging. SWIFT’s approach is described as platform-agnostic, seeking to validate how blockchains can align with institutional risk management and compliance requirements without necessarily replacing traditional systems.

Tom Zschach, SWIFT’s Chief Innovation Officer, has voiced concerns about Ripple’s model, particularly regarding the legal enforceability and governance structure of XRP as a settlement asset. He highlighted that institutions require systems governed by shared, industry-wide consensus rather than the control of a single entity. Zschach’s remarks, posted on LinkedIn, sparked significant discussion within the XRP community and underscored the philosophical divide between Ripple’s blockchain-first approach and SWIFT’s emphasis on governance and risk management. He argued that the trust, legal enforceability, and institutional frameworks underpinning SWIFT are critical to its continued dominance in cross-border payments and that these elements are often missing in crypto-native solutions like XRP.

Despite SWIFT’s cautious stance, Ripple has continued to advance its ecosystem through strategic moves, including the acquisition of Rail for $200 million in 2024. This acquisition aimed to strengthen Ripple’s position in the stablecoin space and expand its capabilities in cross-border payments. Ripple’s RLUSD stablecoin, launched in 2024, is a key component of this strategy. Additionally, Ripple has applied for a U.S. national bank charter, signaling its intent to operate as a federally regulated trust bank. This move would enable Ripple to offer custody services and gain access to Federal Reserve payment rails, further solidifying its credibility with institutional clients. These developments reflect Ripple’s broader ambition to serve as a bridge between traditional finance and crypto-native infrastructure.

Data from DeFiLlama indicates that the XRP Ledger (XRPL) has a total value locked (TVL) of just $87.85 million, significantly lower than Ethereum’s $96.9 billion and Solana’s $11.27 billion. This disparity highlights the challenges XRP faces in competing with other blockchain networks for institutional and retail adoption. Ripple has responded by introducing upgrades such as Automated Market Makers (AMMs), liquidity pools, and an EVM sidechain to improve Ethereum compatibility. However, these efforts have not yet translated into a significant increase in on-chain activity or ecosystem growth. Industry experts suggest that XRP’s future depends on the ability of developers and enterprises to build on the network, as retail participation and on-chain volume remain limited compared to other leading blockchains.

SWIFT and Ripple represent two distinct visions for the future of cross-border payments. While Ripple touts the speed and cost-efficiency of blockchain, SWIFT emphasizes the importance of governance, trust, and institutional compliance. The outcome of their competition is likely to be a hybrid model where both systems coexist, each serving different needs. SWIFT’s integration of blockchain technologies and Ripple’s pursuit of regulatory recognition indicate a potential convergence rather than a complete replacement of existing systems. As both entities continue to evolve, the global payments landscape may see a shift toward more flexible, interoperable solutions that combine the strengths of traditional and crypto-native infrastructure. This dynamic reflects the broader trend in fintech, where innovation and regulation work in tandem to shape the next generation of financial services.

Source:

[1] Are banks ready for XRP? SWIFT exec voices apprehensions (https://cryptoslate.com/swift-cio-questions-ripple-and-xrps-readiness-for-global-banking-standards/)

[2] Now That XRP is Dead, What's Next? Swift Executive Calls ... (https://finance.yahoo.com/news/now-xrp-dead-next-swift-105438346.html)

[3] Ripple vs. SWIFT: The Battle for Cross-Border Payments— ... (https://www.ccn.com/education/crypto/ripple-vs-swift-blockchain-banking-behemoth/)