XRP News Today: Morgan Stanley Sees XRP as a Real-Time, Low-Cost Global Payment Disruptor

Morgan Stanley, one of the world’s largest financial institutions, has acknowledged Ripple’s XRP as a leading international payment alternative to SWIFT, according to an excerpt from the Review of Banking & Financial Law shared by crypto researcher SMQKE on X. The document highlights Ripple’s role in the global payments ecosystem, emphasizing the potential of its distributed ledger technology to streamline cross-border transactions. The passage notes that banks using Ripple can reduce processing costs by up to 60% on certain payments, a cost-efficiency that directly benefits remittance recipients by increasing the amount of funds available after fees. Additionally, the evaluation suggests that a Ripple-like system could shorten settlement periods, accelerate transactions, and reduce the risk of fraud, reinforcing its viability as a competitive alternative in the international payments landscape.

Ripple’s XRP operates as a key enabler within its payment solutions, acting as a bridge currency and providing on-demand liquidity for cross-border transactions. This infrastructure allows for faster and more efficient settlement compared to traditional systems, which often rely on pre-funded nostro/vostro accounts that tie up large amounts of capital. Analysts suggest that XRP’s role in Ripple’s ecosystem could make it central to the company’s broader strategy to challenge established systems like SWIFT, especially as the company has secured licenses in multiple jurisdictions and launched On-Demand Liquidity (ODL) corridors. Ripple’s recent introduction of its RLUSD stablecoin also underscores its regulatory-focused approach to expanding its financial infrastructure.

The debate over whether XRP can replace SWIFT has gained momentum, with differing views from AI-driven analyses and industry experts. ChatGPT, for example, acknowledged XRP’s technological advantages, particularly in embedding liquidity into the protocol and enabling 24/7 settlement. However, the AI also emphasized the importance of trust, regulatory acceptance, and geopolitical neutrality in any potential shift from SWIFT to XRP. In contrast, Grok argued that SWIFT’s strength lies in its long-standing trust and conservative design, making it unlikely that XRP will fully replace the system. Instead, Grok suggested that XRP may coexist with SWIFT, complementing it in certain use cases rather than supplanting it entirely.

SWIFT’s recent blockchain pilots, including tests with the XRP Ledger, indicate a growing interest in exploring alternative technologies that could enhance the efficiency of its infrastructure. These trials aim to evaluate the operational efficiency, security, and compliance of blockchain systems under the upcoming ISO 20022 messaging standards. While SWIFT has not formally partnered with Ripple, these exploratory efforts suggest the possibility of integration or coexistence between the two systems. Tom Zschach, Chief Innovation Officer at SWIFT, has raised concerns about banks outsourcing settlement finality to XRP, given that it is not a regulated asset and does not sit on institutional balance sheets. He emphasized that institutions are more likely to rely on internal payment rails, tokenized deposits, or regulated stablecoins rather than decentralized solutions like XRP.

Industry analysts project that XRP could capture a significant share of the global payments market in the coming years, with some estimating that it might claim 15% of SWIFT’s market within five years. This potential growth is attributed to XRP’s ability to eliminate the need for pre-funded accounts, reduce transaction costs, and offer a scalable settlement layer that operates continuously without downtime. Critics of traditional banking systems highlight the inefficiencies of the current model, where idle funds remain locked in nostro and vostro accounts. Ripple’s XRP offers a solution that not only reduces friction but also enhances liquidity and lowers the costs of cross-border transactions for both banks and end-users.

The future of XRP and Ripple in the global payments ecosystem remains uncertain, but the growing recognition from financial institutions and the ongoing exploration by SWIFT suggest that XRP is positioned as a viable contender in the evolving financial landscape. As the debate between Ripple and SWIFT continues, the broader financial industry will likely monitor developments closely, assessing whether XRP can maintain its momentum and further solidify its role as an international payment solution.

Source:

[1] Morgan Stanley: Ripple (XRP) Is a Leading International Payment Alternative to SWIFT (https://timestabloid.com/morgan-stanley-ripple-xrp-is-leading-international-payment-alternative-to-swift/)

[2] Will XRP Replace SWIFT? We Asked ChatGPT and Grok (https://www.ccn.com/news/crypto/will-xrp-replace-swift-we-asked-chatgpt-and-grok/)

[3] XRP In Focus as Ripple SWIFT Debate Escalates on Settlement Rails (https://coingape.com/end-of-road-for-xrp-ripple-vs-swift-debate-escalates-on-settlement-rails/)