XRP News Today: SWIFT Tests XRP as Blockchain Challenges Legacy Financial Trust

SWIFT, the global messaging network that underpins the world’s interbank transfers, has launched live trials with Ripple’s XRP Ledger and Hedera Hashgraph as part of its efforts to modernize cross-border payment systems. The trials aim to explore whether these blockchain technologies can operate in tandem with conventional banking infrastructure under the upcoming ISO 20022 standard, which will become mandatory for financial institutions in November 2025. This move reflects SWIFT’s strategic pivot toward integrating emerging technologies to address inefficiencies in its current multi-bank process, which is known for its delays and high fees.

XRP, Ripple’s native token, has emerged as a key contender in the trials due to its ability to facilitate near-instant settlements at minimal fees. Unlike traditional SWIFT transfers, which can take up to five days and incur costs ranging from £20 to £40, XRP enables transactions to settle in seconds, bypassing the need for intermediary banks. This efficiency has led analysts to speculate that if just 1% of SWIFT’s $150 trillion in annual transactions were processed through XRP, it could generate $1.5 trillion in demand for the asset. Such a shift would represent a significant leap in XRP’s perceived value and usage, especially given its current trading volumes are far below this potential threshold.

However, SWIFT’s leadership has not been entirely receptive to the notion that blockchain could replace its messaging infrastructure. Tom Zschach, Chief Innovation Officer at SWIFT, has publicly criticized the idea of a single crypto network supplanting the cooperative banking system. In a LinkedIn post, he argued that “neutrality in finance is not about open source code or throughput, but about governance, legal enforceability, and institutional trust.” Zschach emphasized that SWIFT’s role as a neutral orchestrator is rooted in its cooperative structure and its ability to provide trusted governance and dispute resolution, which public blockchains lack. He also dismissed the idea of a binary “Ripple or SWIFT” future, instead advocating for a “multi-chain” approach that combines SWIFT’s trust scaffolding with the innovation of public infrastructure, including blockchains.

This stance has sparked debate within the crypto and fintech communities. Marty Sidoruk, a product lead at NZ Transport Agency, responded to Zschach’s comments, suggesting that SWIFT should leverage its leadership to embrace emerging technologies rather than resist them. The discussion underscores a broader philosophical divide: while Ripple champions technological disruption and speed, SWIFT emphasizes governance and institutional trust as the cornerstones of global finance.

Despite these tensions, Ripple has continued to build its case through partnerships and long-term projections. Ripple CEO Brad Garlinghouse has predicted that by 2030, the XRP Ledger could capture up to 14% of SWIFT’s global liquidity. Garlinghouse’s rationale centers on the idea that liquidity—rather than messaging—is the core battleground for cross-border payments. If XRP can become the go-to asset for facilitating conversions between currencies, it could significantly reduce the reliance on correspondent banks and traditional liquidity structures. This vision has already found traction in markets such as Japan, where Ripple has partnered with SBI to launch a stablecoin, RLUSD.

Analysts are also optimistic about the potential for XRP to gain a broader role in the global financial ecosystem. For example, if SWIFT’s trials result in a hybrid system where blockchain networks handle settlement while SWIFT manages messaging and compliance, XRP could serve as the bridge between these systems. This model would retain the trust and institutional adoption SWIFT has cultivated over decades while incorporating the speed and efficiency of blockchain technology.

In conclusion, SWIFT’s trials with XRP and other blockchain solutions mark a pivotal moment in the evolution of cross-border payments. While SWIFT remains skeptical about the idea of replacement, it is not dismissing the value of blockchain innovation. Instead, it appears to be positioning itself to adapt and integrate these technologies into its existing framework. For Ripple, this represents both an opportunity and a challenge—proving that XRP can coexist with SWIFT while capturing a meaningful share of the global liquidity market. The outcome will likely determine not only the future of cross-border payments but also the broader role of blockchain in the global financial system.

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

[3] Ripple's SEC battle is over: Time to challenge SWIFT? (https://cointelegraph.com/news/ripple-sec-over-challenge-swift)

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