XRP Drops 2.496% Amid SWIFT Disruption Hopes, Fed Intervention Signals

XRP's latest price was $2.10, down 2.496% in the last 24 hours. As the global financial system evolves towards faster and more efficient payment solutions, XRP has emerged as a potential disruptor to SWIFT, the longstanding leader in cross-border transactions. Since its establishment in 1973, SWIFT has been the backbone of global finance, connecting over 11,000 financial institutions across more than 200 countries. It processes over $5 trillion in transactions daily, translating to an annual volume of approximately $1.25 quadrillion. However, SWIFT’s reliance on a correspondent banking network often results in inefficiencies, delays, and high costs. These limitations have led financial institutions to explore alternative solutions, with Ripple and its native asset, XRP, emerging as a strong contender by providing real-time settlement using XRP as a bridge currency. Transactions on RippleNet are completed within seconds at a fraction of the cost associated with SWIFT’s traditional multi-day process. The idea of XRP replacing SWIFT has also been supported by various financial analysts, with some estimating that if XRP were to handle 5-10% of SWIFT’s annual transaction volume, its price and market capitalization would need to rise significantly. In October 2024, global investment bank houlihan lokey identified Ripple as one of SWIFT’s strongest competitors, citing its On-Demand Liquidity (ODL) service as a key advantage. Additionally, in January 2025, Mark Yusko, CEO and CIO of the billion-dollar investment fund Morgan Creek Capital Management, expressed interest in supporting XRP if it replaced SWIFT. However, despite its potential, several hurdles must be overcome for XRP to achieve such a valuation. Regulatory clarity remains a significant obstacle, particularly in the U.S., where Ripple has been engaged in a lengthy legal battle with the Securities and Exchange Commission (SEC). A favorable resolution could boost institutional confidence in XRP and accelerate adoption. Scalability is another critical factor. SWIFT processes enormous transaction volumes daily, and for XRP to compete at this level, the XRP Ledger (XRPL) must be capable of handling similar loads reliably. While the XRPL already enables rapid settlements, further enhancements in liquidity management and infrastructure would be necessary to match SWIFT’s scale. Ripple’s ODL service is actively addressing these challenges, but more work is required before XRP can fully replace SWIFT.

Versan Aljarrah, co-founder of Black Swan Capitalist and a prominent voice in the cryptocurrency space, has weighed in on recent signals from the U.S. Federal Reserve. In response to a news report stating that the Fed is ready to intervene in financial markets following Donald Trump’s tariff announcements, Aljarrah emphasized the broader monetary implications and XRP’s potential role in future financial infrastructure. In a post on X, Aljarrah stated that “Trump will refinance the debt,” leading to Federal Reserve action involving the creation of liquidity and asset purchases. He further noted that “gold is already ahead,” implying that the market anticipates this shift toward looser monetary policy. Aljarrah believes this trajectory will include rate cuts that weaken the U.S. dollar and cause real assets to rise in value. Just as we said, Trump will refinance the debt, leading the Fed to print money and buy assets. Gold is already ahead, anticipating the move. Rate cuts will follow, devaluing the dollar and driving up real assets. This is why XRP will become the neutral bridge reserve asset. Aljarrah argues that these developments create the conditions for XRP to become a neutral bridge reserve asset. While the Federal Reserve has not explicitly confirmed such a shift, his viewpoint aligns with growing speculation that traditional monetary tools may prove inadequate in a prolonged debt refinancing environment. His statement suggests that in a global system facing de-dollarization pressures and currency volatility, a blockchain-based asset like XRP could emerge as a stabilizing intermediary and fulfill its goal of becoming a reserve asset. Trump’s tariff announcements caused a significant market collapse, and Aljarrah shared a screenshot from an article revealing the Federal Reserve’s readiness to intervene. However, many community members are convinced that Trump’s tariffs are part of a master plan for a global debt reset, and this could pave the way for XRP to become the backbone of the new financial system. Many market participants are still uncertain and seeking safe havens. Gold experienced a notable uptick after Trump announced the 90-day pause on most tariffs, and Aljarrah suggests this massive rise reflects investors’ concerns shifting toward safer investments. XRP as a Global Reserve Asset Aljarrah’s position on XRP is consistent with views that the asset could serve as a cross-border liquidity tool not tied to any single national economy. In a world where dollar dominance is challenged and global institutions seek settlement solutions that bypass legacy systems, XRP’s design and transaction speed offer a possible alternative. Experts are already pitching XRP as a replacement for SWIFT. As central banks move toward more aggressive monetary easing and asset purchases, XRP, with its built-in neutrality, scalability, and numerous advantages over traditional systems, could benefit from a shift in global liquidity flows.

Edoardo Farina, CEO of Alpha Lions Academy and a respected figure in the cryptocurrency industry, recently emphasized the pivotal function of XRP’s escrow system in Ripple’s long-term financial vision. In a post on X, Farina called the escrow “the beginning and the end of the master plan,” positioning XRP as a digital asset with the potential for global monetary integration. Farina’s remarks bring renewed focus to the structure and purpose of Ripple’s escrow system, which holds a large portion of XRP’s total supply. This mechanism was created to provide stability and transparency in the release of XRP over time, protecting the market from unpredictable token distribution. According to Farina, it also serves as a strategic tool for liquidity management and financial coordination on a global scale. The Escrow is the beginning and the end of the master plan, a strategic operation positioning XRP as the Global Reserve Currency. Hidden in plain sight, it ensures steady control, liquidity, and ultimate dominance over the financial system. Ripple’s escrow system initially locked 55 billion XRP, and the company releases one billion monthly. Any unused XRP is returned to escrow, extending the schedule. This model safeguards the digital asset’s price, ensuring predictability, which is necessary for institutions considering integration with digital assets. Farina’s statement reflects a growing belief among XRP proponents that the asset is uniquely structured for reserve currency status. Unlike Bitcoin, which operates on a deflationary model, or Ethereum, which is still transitioning to a proof-of-stake economy, XRP’s supply structure and governance through Ripple’s escrow offer transparency and control that aligns with institutional financial expectations. Donald Trump mentioned XRP when he announced the strategic U.S. crypto reserve, and enthusiasts have bigger expectations, with many suggesting it could become the global reserve currency. XRP’s low transaction costs, rapid settlement capabilities, and energy-efficient consensus protocol already position it as a practical solution for cross-border payments. However, Farina’s comments reinforce the idea that the escrow mechanism is not just a feature but a cornerstone of Ripple’s broader ambition. By holding most of the supply in escrow, Ripple can maintain influence over the token’s liquidity and circulation, supporting its use in high-volume institutional contexts. Farina’s emphasis on the escrow as a deliberate component of that trajectory provides a sharper framework for the digital asset to serve as a global reserve currency. Ripple already has partnerships globally, and as more major financial institutions explore blockchain solutions to modernize settlement layers, XRP remains among the few digital assets with a defined supply mechanism, central strategic planning, and a vision aligned with large-scale liquidity needs.

Ask Aime: What is the impact of XRP on the global financial system, and how does it compare to SWIFT?