XRP News Today: SWIFT Prefers Shared Governance Over Corporate-Controlled Blockchain

SWIFT, the global financial messaging network, has reiterated concerns over the adoption of Ripple’s XRP Ledger by traditional financial institutions, with its Chief Innovation Officer, Tom Zschach, emphasizing a preference for neutral, shared governance infrastructure over corporate-controlled platforms. Zschach recently stated that “surviving lawsuits isn’t resilience,” underscoring the need for systems where governance is distributed across the industry rather than controlled by a single entity [1]. He further highlighted that compliance is not merely about a single company navigating regulatory hurdles but about the broader industry agreeing on standardized frameworks [1].

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This perspective aligns with broader trends in institutional blockchain adoption, where traditional finance increasingly favors platforms like Circle’s USDC and Ethereum-based stablecoins, which are perceived as more scalable and compliant with evolving global standards [1]. The XRP Ledger (XRPL), in contrast, has seen declining participation in DeFi metrics, including total value locked (TVL) and decentralized exchange volume. According to DeFiLlama, the TVL on XRPL stands at $87.85 million, a stark contrast to Ethereum’s $96.9 billion and Solana’s $11.27 billion [1]. These figures indicate a widening gap in network effects and developer activity between XRP and its competitors [1].

Despite these challenges, Ripple has introduced several initiatives to revitalize the XRP Ledger. These include the launch of Automated Market Makers (AMMs) with new liquidity pools, the development of its own stablecoin (RLUSD), and the integration of a native USDC on the XRP Ledger. Additionally, Ripple has launched an EVM sidechain to enhance Ethereum compatibility, aiming to attract developers and institutional users [1]. Adam Kagy, co-founder of an NFT marketplace, noted that enterprises are unlikely to build on networks with limited retail participation or on-chain activity, reinforcing the importance of active ecosystem development [1].

The potential integration of Ripple’s XRP Ledger with SWIFT’s messaging infrastructure remains a topic of speculation. SWIFT has launched trials using XRP Ledger and Hedera Hashgraph to test their compatibility with conventional banking systems under the ISO 20022 standard, which will become mandatory in 2025 [3]. Ripple CEO Brad Garlinghouse has estimated that if XRP were to capture just 1% of SWIFT’s $150 trillion in annual transactions, it could generate $1.5 trillion in demand for the asset [3]. However, such a scenario remains contingent on SWIFT’s evaluation of XRP’s suitability as a cross-border settlement tool, which has yet to materialize into concrete partnerships [3].

While SWIFT’s trials offer a potential pathway for XRP, the organization’s executive leadership continues to advocate for infrastructure that avoids corporate dominance, favoring systems where governance is collectively managed by member institutions [1]. Zschach described public blockchains as “fast engines with no cockpit,” emphasizing the need for privacy, enforceability, and regulatory alignment in global financial systems [5]. This stance suggests that even if blockchain is adopted, it may be used to enhance existing structures rather than replace them entirely.

The ongoing debate reflects a broader divide in the financial technology space between corporate-driven innovation and industry-wide governance models. Ripple’s efforts to position XRP as a backbone for institutional settlement face significant challenges, not only in competing with Ethereum and Solana but also in convincing traditional finance to trust a single entity’s rails for cross-border transactions [1].

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] Is XRP the Smartest Cryptocurrency to Buy With $1000 ... (https://www.nasdaq.com/articles/xrp-smartest-cryptocurrency-buy-1000-right-now)

[3] 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/)

[4] News. Swift testing XRP. (https://www.reddit.com/r/XRP/comments/1n671he/news_swift_testing_xrp/)

[5] SWIFT Executive Reignites Debate Over Ripple's ... (https://cryptodnes.bg/en/swift-executive-reignites-debate-over-ripples-payments-role/)