XRP News Today: SWIFT Challenges XRP’s Legal Legitimacy in Battle for Banking Trust

SWIFT’s Chief Innovation Officer Tom Zschach has reiterated skepticism toward Ripple’s XRP as a viable settlement rail for global banks, emphasizing that resilience cannot be equated with legal survival alone. In a recent LinkedIn post, Zschach criticized Ripple’s governance structure, stating that institutions prefer infrastructure with “neutral, shared governance” rather than reliance on a competitor’s rails [4]. He underscored that compliance is not merely about regulatory approval for a single firm but about industry-wide agreement on enforceable and neutral standards [5].

Zschach’s remarks have reignited the debate around XRP’s role in the financial ecosystem. Critics argue that XRP lacks the legal enforceability and regulatory oversight that banks require for final settlement. He specifically pointed out that XRP is not a deposit, not regulated money, and does not reside on a bank’s balance sheet, making it unsuitable for institutions seeking guaranteed finality in transactions [6]. His comments align with broader industry concerns over Ripple’s centralization, particularly given that the company controls more than 35% of the XRP supply [4].

Despite these criticisms, Ripple has positioned XRP as a decentralized solution to long-standing inefficiencies in the global payment system. The company’s XRP Ledger (XRPL) is designed to eliminate the need for pre-funded nostro/vostro accounts, which currently lock trillions of dollars in idle liquidity across borders [6]. Ripple’s On-Demand Liquidity (ODL) service and the recently launched RLUSD stablecoin are part of its broader compliance-focused strategy to align with regulatory expectations [4]. Analysts suggest that XRP’s ability to operate 24/7/365 and process transactions at a fraction of the cost of traditional rails gives it an edge in certain use cases [6].

However, the DeFi landscape has left XRP trailing far behind major competitors. Data from DeFiLlama shows that the XRPL has a total value locked (TVL) of just $87.85 million, with daily decentralized exchange volume below $70,000—dwarfed by Ethereum’s $96.9 billion TVL and Solana’s $11.27 billion [2]. XRP’s derivatives market also lags significantly, with futures open interest remaining a small fraction of Ethereum’s or Solana’s, reflecting weak institutional participation [2]. Ripple has introduced upgrades like Automated Market Makers (AMMs) and an EVM sidechain to foster growth, but many in the community argue that real progress depends on attracting developers and enterprises willing to build on a network with limited retail participation [2].

Price-wise, XRP has seen mixed signals in recent trading sessions. It formed a symmetrical triangle pattern between $2.82 and $2.88, with large wallets accumulating 340 million XRP (~$960 million) in the past two weeks amid significant institutional liquidations [3]. While some analysts predict a potential breakout to $7–$13, others caution that institutional selling and fading momentum could push the token lower. The broader market remains cautious, with XRP currently trading below key resistance levels and awaiting a clear directional catalyst [3].

The ongoing debate between Ripple and SWIFT highlights a fundamental tension in the evolution of global finance: whether public blockchains can earn the trust of institutions and meet the legal and operational demands of a highly regulated sector. Zschach’s emphasis on “shared standards” and neutrality suggests that traditional finance is unlikely to fully embrace decentralized settlement solutions unless they align with existing governance models [4]. For Ripple, the challenge lies in proving that XRP can deliver both efficiency and legal enforceability—a bar that SWIFT itself has set as a global standard.

Source:

[1] XRP (Ripple) Plunged Below $3. Buy the dip, or Run for ... (https://www.nasdaq.com/articles/xrp-ripple-plunged-below-3-buy-dip-or-run-hills)

[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] XRP Symmetrical Triangle Forms Under $3.00, $3.30 ... (https://www.coindesk.com/markets/2025/09/04/xrp-symmetrical-triangle-forms-under-usd3-00-usd3-30-breakout-level-in-focus)

[4] Banks Won't Trust Ripple And XRP, SWIFT CIO Says (https://bitcoinist.com/banks-wont-trust-ripple-and-xrp-swift-cio-says/)

[5] SWIFT CIO Takes Dig at Ripple: 'Surviving Lawsuits Isn't ... (https://u.today/swift-cio-takes-dig-at-ripple-surviving-lawsuits-isnt-resilience)

[6] End of Road for XRP? Ripple vs SWIFT Debate Escalates ... (https://coingape.com/end-of-road-for-xrp-ripple-vs-swift-debate-escalates-on-settlement-rails/)

[7] SWIFT CIO Claims Banks Will Skip XRP, Favor Internal ... (https://www.fxleaders.com/news/2025/09/04/swift-cio-claims-banks-will-skip-xrp-favor-internal-rails-stablecoins/)

[8] SWIFT Exec on Ripple Taking Over Financial System (https://u.today/swift-exec-on-ripple-taking-over-financial-system-wheres-the-evidence)