XRP News Today: SWIFT and Ripple Clash Over XRP’s Role in the Future of Global Payments

SWIFT, the global messaging network that underpins interbank transfers, is conducting live trials with Ripple’s XRP Ledger to explore faster and cheaper cross-border payments. These trials, part of a broader effort to modernize the financial system, aim to evaluate whether XRP can serve as a bridge currency to facilitate instant and low-cost global transactions. According to the organization, the trials are being conducted alongside Hedera Hashgraph and are centered around the adoption of the ISO 20022 messaging standard, which is expected to become mandatory for financial institutions by November 2025 [1].

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SWIFT’s current system is known for its inefficiencies, with international transfers often taking up to five days and incurring fees ranging from £20 to £40. These delays and costs are attributed to the reliance on multiple banks for intermediary steps in the transfer process, which can lead to errors, additional fees, and reduced transparency for end users [1]. XRP, designed by Ripple over a decade ago, was developed to address these inefficiencies by enabling near-instant settlement of transactions with minimal fees, making it a compelling alternative for SWIFT’s current multi-bank model [1].

Ripple’s XRP Ledger promises settlement in seconds with minimal fees, a stark contrast to the delays and charges associated with SWIFT. If SWIFT finds a way to integrate XRP into its infrastructure, the asset could become a central component of global financial transfers. This would involve banks using XRP as a bridge currency between different fiat currencies, effectively eliminating the need for correspondent banks to handle the conversion process [1]. For Ripple, integration with SWIFT would represent a significant breakthrough in its efforts to position XRP as more than just a cryptocurrency.

Ripple has already signed partnerships with major financial institutions, including Japan’s SBI, which introduced a Ripple-backed stablecoin called RLUSD. Analysts suggest that even a small percentage of SWIFT’s transactions—such as 1% of the $150 trillion in annual volume—could generate $1.5 trillion in demand for XRP, representing a substantial shift in the digital asset’s scale and perception [1]. Ripple CEO Brad Garlinghouse has been optimistic, stating that the XRP Ledger could capture up to 14% of SWIFT’s global liquidity by 2030. According to Garlinghouse, the key lies in leveraging liquidity rather than messaging, emphasizing that driving liquidity through XRP could significantly benefit its adoption [1].

However, SWIFT has expressed concerns about the centralization of XRP and its dependence on external chains, as highlighted by the SWIFT Chief Innovation Officer, Tom Zschach. Zschach questioned whether banks would be comfortable outsourcing settlement finality to an external token, emphasizing the importance of shared governance and industry-wide compliance standards. He argued that institutions require legal enforceability and trust frameworks that no single company can provide, even if it survives regulatory scrutiny [2]. Zschach also noted that if tokenized deposits and regulated stablecoins gain traction, banks may prefer to settle in instruments they already issue rather than relying on external assets like XRP [2].

Despite these challenges, SWIFT is actively exploring blockchain-based solutions to complement its traditional payment systems. The organization has been testing public blockchains like XRP Ledger and Hedera Hashgraph since 2016, with 2025 marking a significant milestone in integrating blockchain technology into its core operations [2]. The shift to the ISO 20022 standard is a critical enabler for these integrations, as it provides a structured, data-rich format that supports seamless interactions between traditional financial systems and blockchain-based digital assets [2]. While SWIFT acknowledges the potential of public blockchains, it emphasizes the need for governance, regulation, and enforceability to ensure institutional adoption [2].

The ongoing competition between Ripple and SWIFT is reshaping the landscape of cross-border payments. Ripple’s focus on speed and cost efficiency is challenging the traditional SWIFT model, which has relied on decades of trust and network effects to maintain its dominance. While Ripple’s technology offers a compelling alternative, SWIFT’s entrenched position and emphasis on governance and compliance remain formidable barriers. As both systems continue to evolve, the future may see a hybrid model where SWIFT integrates blockchain-based solutions to enhance its services without fully displacing its current infrastructure [5]. This evolution could lead to faster, cheaper, and more transparent global transactions, ultimately benefiting end users [5].

Source:

[1] 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/)

[2] Ripple, SWIFT Trade Barbs Amid XRPL Payments Trial (https://www.ccn.com/news/crypto/ripple-swift-barbs-xrpl-payments-trial/)

[3] Are banks ready for XRP? SWIFT exec voices apprehensions (https://cryptoslate.com/swift-cio-questions-ripple-and-xrps-readiness-for-global-banking-standards/)

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

[5] Ripple vs. SWIFT: The Battle for Cross-Border Payments— ... (https://www.ccn.com/education/crypto/ripple-vs-swift-blockchain-banking-behemoth/)