XRP News Today: XRP Emerges as Blockchain’s Answer to SWIFT’s Outdated System

The conclusion of Ripple’s prolonged legal battle with the U.S. Securities and Exchange Commission (SEC) has shifted the focus toward its broader mission: challenging the dominance of SWIFT, the global financial messaging system. With legal clarity for XRP, Ripple aims to position its blockchain-based solutions as a viable alternative to traditional cross-border payment infrastructures. SWIFT, which has facilitated interbank transfers since 1973, processes over 53 million messages daily across 40,000 routes and 11,500 institutions. However, its multi-day settlement times, high fees, and lack of transparency have long drawn criticism from the blockchain industry [6].

Ripple’s XRP Ledger (XRPL) offers near-instant transactions with minimal fees, a stark contrast to SWIFT’s cumbersome and costly processes. Ripple CEO Brad Garlinghouse has previously argued that blockchain technology provides higher throughput and transparency, making it a superior alternative for modern financial infrastructure [6]. Despite these advantages, SWIFT’s widespread adoption and entrenched governance model—characterized by shared, neutral control—continue to present a formidable barrier to disruption [3].

Recent developments suggest a potential convergence between traditional systems and blockchain innovation. SWIFT has launched trials using Ripple’s XRP Ledger and Hedera Hashgraph to explore how public blockchains could complement its messaging network under the ISO 20022 standard. If successful, these trials could elevate XRP to a central role in cross-border payments [4]. Tom Zschach, SWIFT’s Chief Innovation Officer, emphasized that the future is not about replacing SWIFT but integrating blockchain capabilities with existing infrastructure [4].

Ripple’s ecosystem is evolving with key upgrades, including the launch of RLUSD, its stablecoin, and an Ethereum Virtual Machine (EVM) sidechain to enhance compatibility with Ethereum-based applications. Despite these efforts, XRP’s DeFi activity lags significantly behind that of Ethereum and Solana, with total value locked (TVL) on the XRP Ledger at $87.85 million compared to $96.9 billion on Ethereum [1]. Institutional participation in XRP derivatives also remains limited, reflecting broader challenges in generating network effects and developer activity.

Regulatory clarity may provide a crucial tailwind for Ripple’s ambitions. The U.S. government’s GENIUS Act, aimed at establishing a regulatory framework for stablecoins, and the EU’s Markets in Crypto-Assets (MiCA) regulation, which unifies crypto guidelines across member states, signal growing institutional acceptance of blockchain-based solutions [5]. Ripple has also expanded its partnerships globally, signing agreements with over 300 financial institutions, including Japan’s SBI, which launched RLUSD as part of its cross-border payment strategy [2].

Analysts have speculated that if XRP were to capture even a small fraction of SWIFT’s $150 trillion in annual transaction volume, it could generate substantial demand for the asset. Garlinghouse has estimated that XRP could capture up to 14% of SWIFT’s liquidity by 2030 [4]. However, widespread adoption remains contingent on addressing concerns over governance, regulatory alignment, and institutional trust—factors that have historically hindered blockchain’s integration into traditional finance.

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)