XRP News Today: SWIFT Defends Governance as Key to Trust in Global Finance

SWIFT Executive: Ripple (XRP) Is Always Considered for Cross-Border and Cross-Currency Payments

SWIFT Chief Innovation Officer Tom Zschach recently commented on Ripple and its XRP Ledger in a series of posts on LinkedIn, asserting that surviving legal challenges does not equate to resilience. Instead, he emphasized the importance of neutral and shared governance in the financial ecosystem. Zschach criticized Ripple’s centralization, highlighting that the XRP Ledger is dominated by Ripple, a factor that may deter institutions from adopting it as a settlement mechanism. The executive also reiterated that institutions do not want to rely on a competitor’s infrastructure for critical financial operations [1].

Zschach’s remarks come amid ongoing debates about the role of blockchain technology in finance. He argued that public blockchains, including Ripple’s XRP Ledger, are not complete solutions for trusted settlement on their own. While they offer programmability and transparency, they lack the trust layer necessary for institutional adoption. Zschach described public blockchains as a "substrate" requiring governance and legal enforceability on top to be viable for large-scale finance [2].

The SWIFT CIO also addressed Ripple’s compliance approach, challenging the notion that one company securing regulatory approval is sufficient for the entire industry. Instead, he stressed the need for shared standards across institutions, free from the influence of a single balance sheet. This viewpoint contrasts with Ripple’s strategy of engaging directly with regulators to validate its operations. Zschach’s comments reflect a broader skepticism in traditional finance about the ability of a single entity to ensure compliance across the industry [1].

Data from XRP Scan shows that Ripple’s escrow accounts hold 32% of XRP’s total supply, reinforcing concerns about the token’s decentralization. Critics argue that such concentration of ownership undermines the perceived neutrality of the XRP Ledger. On-chain analyst ZachXBT has described XRP holders as "exit liquidity" for insiders, further highlighting the centralization debate [1]. Despite these criticisms, Ripple has continued to develop its blockchain infrastructure, including the introduction of Automated Market Makers (AMMs), a stablecoin (RLUSD), and an EVM sidechain to improve compatibility with Ethereum [3].

Recent performance metrics for the XRP Ledger indicate significant challenges. According to DeFiLlama, the total value locked (TVL) on the XRP Ledger stands at $87.85 million, far below Ethereum’s $96.9 billion and Solana’s $11.27 billion. Daily decentralized exchange volume on the XRP Ledger also remains under $70,000, underscoring its limited appeal compared to other blockchain networks [3]. XRP’s futures open interest is similarly low, reflecting weak institutional participation and signaling a struggle to generate network effects that would attract developers and large enterprises.

Despite these challenges, Ripple continues to pursue growth strategies. The company recently applied for a U.S. national banking license, which, if approved, would align it more closely with traditional financial institutions and potentially enhance its credibility. Ripple’s vision includes a future where its payment solutions, powered by blockchain technology, play a central role in cross-border transactions. However, SWIFT’s established governance model, with over 11,000 institutions and a neutral, cooperative structure, remains a formidable competitor [1].

The debate over the future of global payments highlights a critical philosophical divergence. Ripple advocates for a decentralized, blockchain-based approach that emphasizes speed and cost efficiency, while SWIFT prioritizes governance, legal enforceability, and institutional trust. Zschach’s comments suggest that SWIFT views itself as an orchestrator of global financial infrastructure, not a competitor to blockchain-based systems. He emphasized that the future of finance is not about replacing traditional systems with crypto-native networks but about convergence—where institutions adopt the best features of both worlds [2].

In conclusion, while Ripple and XRP continue to innovate and expand into areas like DeFi and stablecoin issuance, the broader financial ecosystem remains cautious about the token’s centralization and governance model. SWIFT’s emphasis on neutrality and shared governance reflects a broader institutional preference for established systems that have demonstrated resilience over decades. As the competition between blockchain-based solutions and traditional financial infrastructure unfolds, the ultimate winner may emerge from a hybrid model where both systems coexist and complement each other [1].

Source:

[1] Ripple Vs. SWIFT Battle Heating Up As Exec Lands Major ... (https://www.mitrade.com/insights/news/live-news/article-3-1093103-20250904)

[2] SWIFT Exec Says Banks Will Absorb 'the Best of Public ... (https://thedefiant.io/news/research-and-opinion/swift-exec-says-banks-will-absorb-the-best-of-public-chains)

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