XRP News Today: Ripple’s XRP Ledger Aims to Disrupt SWIFT’s 50-Year Domination

Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has concluded, freeing the company to focus on its long-term ambition: challenging SWIFT, the global financial messaging system that has dominated international transactions since 1973 [6]. With regulatory clarity for XRP, Ripple is now positioned to accelerate its vision of using blockchain technology to offer faster, cheaper, and more transparent cross-border payments. However, the path to replacing SWIFT remains steep, as the legacy system holds a vast network of over 11,500 institutions across 220 countries [6].

SWIFT operates by facilitating the transmission of payment instructions between banks, but it does not move money directly. Instead, it relies on a complex web of correspondent banking relationships, which can lead to delays of several days and substantial fees. In 2024, SWIFT reported that one in 10 transactions failed and one in 20 settled late [6]. These inefficiencies have made the system a prime target for disruption, especially with the rise of blockchain-based alternatives like Ripple’s XRP Ledger (XRPL). Ripple’s solution promises near-instant settlement times and minimal fees, leveraging XRP as a bridge currency for cross-border transfers [2]. This efficiency has led some to speculate that blockchain technology could fundamentally reshape global finance.

Ripple has taken steps to integrate with traditional financial systems while expanding its blockchain capabilities. Notable initiatives include the development of an EVM-compatible sidechain to improve Ethereum interoperability, the launch of RLUSD—a stablecoin pegged to the U.S. dollar—and the expansion of its On-Demand Liquidity (ODL) service [1]. Despite these advancements, XRP’s DeFi ecosystem lags significantly behind that of Ethereum and Solana. As of the latest data, XRP’s DeFi total value locked (TVL) stands at approximately $87.85 million, compared to $96.9 billion for Ethereum and $11.27 billion for Solana [1]. This stark contrast highlights the challenges Ripple faces in generating the network effects and institutional adoption necessary for widespread acceptance.

SWIFT’s Chief Innovation Officer, Tom Zschach, has been vocal about the limitations of blockchain in the context of global finance. He has argued that neutrality and shared governance are critical for institutional trust and that a single entity or token cannot replace the cooperative infrastructure SWIFT provides [3]. Zschach also raised concerns about the legal enforceability of settlements on public blockchains like XRP, questioning how banks would handle disputes without a centralized authority [3]. While acknowledging the innovation brought by public chains, he emphasized that global financial systems require more than just technical solutions—they demand trusted governance structures and regulatory alignment.

Despite these challenges, Ripple has made notable progress in the past year. The company secured partnerships with over 300 financial institutions worldwide and expanded its presence in the Asia-Pacific region [2]. Ripple has also taken steps toward regulatory compliance in the U.S., with the recent passage of the GENIUS Act, which provides a framework for stablecoin regulation [5]. Ripple CEO Brad Garlinghouse has expressed optimism about the future, predicting that the XRP Ledger could capture up to 14% of SWIFT’s global liquidity by 2030 [4]. If just 1% of SWIFT’s $150 trillion in annual transactions were processed using XRP, it could generate $1.5 trillion in demand for the asset [4]. However, such a shift would require banks to overcome their entrenched reliance on SWIFT and embrace the perceived risks of adopting a blockchain-based solution.

Ripple’s ability to challenge SWIFT ultimately hinges on the willingness of financial institutions to modernize their operations and adopt new technologies. While XRP offers undeniable advantages in speed and cost, the transition will require significant investment and a shift in mindset among risk-averse institutions. As SWIFT continues to innovate with initiatives like ISO 20022 and SWIFT GPI, the competition between the two systems is likely to intensify, with the broader financial sector watching closely to determine which system will lead the future of cross-border payments.

Source:

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

[2] What is XRP vs Swift: Crypto vs Banking Explained (https://www.bitget.com/wiki/what-is-xrp-vs-swift)

[3] Did SWIFT CIO Just Hint 'Banks Will Never Use XRP'? (https://coinpedia.org/news/xrp-news-did-swift-cio-just-hint-banks-will-never-use-xrp/amp/)

[4] SWIFT's Ripple Trial May Move XRP To Center of Global ... (https://www.ccn.com/news/crypto/swifts-ripple-trial-turn-xrp-backbone-global-payments/)

[5] Crypto Rules in Europe vs. the US: Does Your Stablecoin ... (https://finance.yahoo.com/news/crypto-rules-europe-vs-us-184431208.html)

[6] Ripple's SEC battle is over: Time to challenge SWIFT? (https://cointelegraph.com/news/ripple-sec-over-challenge-swift)