XRP News Today: XRP's Push to Shake Up SWIFT Faces Regulatory and Institutional Hurdles

SWIFT has initiated trials integrating blockchain technology into its global financial infrastructure, with Ripple's XRP Ledger (XRPL) emerging as a key contender for cross-border payment solutions. The Belgium-based financial messaging network, which processes over $150 trillion annually in transactions, announced in September 2025 that it would begin supporting blockchain elements, including crypto wallet addresses and tokenized assets, starting November 22. This update aligns with SWIFT's broader strategy to modernize its systems, particularly as it transitions to ISO 20022 messaging standards by year-end. Over 30 major banks, including Bank of America, JPMorgan Chase, and Citi, are participating in the trials, which explore the use of distributed ledger technology (DLT) to enhance transaction speed and reduce costsThe Motley Fool, *SWIFT Tests A Blockchain Ledger With 30+ Banks*^[1].

Ripple's XRP Ledger has demonstrated technical compatibility with SWIFT's requirements, offering near-instant settlement (3–5 seconds) and minimal fees ($0.0002 per transaction). The XRPL's ISO 20022 compliance further strengthens its eligibility for integration. Ripple CEO Brad Garlinghouse has projected that XRP could capture up to 14% of SWIFT's transaction volume within five years, citing growing institutional adoption of Ripple's On-Demand Liquidity (ODL) service and partnerships with entities like DBS Bank and Franklin TempletonBeInCrypto, *SWIFT XRP Ledger Integration Probability*^[2]. However, SWIFT has emphasized its role as a neutral facilitator, testing multiple blockchains-including Ethereum-based solutions and Hedera-without committing to a single technologyCoinpedia, *Fact Check: Is SWIFT Teaming Up with Ripple for XRP Payments?*^[3].

The integration of XRP into SWIFT's ecosystem has been facilitated by third-party platforms like PaymentSafe, which enable XRP to function as a bridge currency within the SWIFT network. This approach allows banks to leverage XRP's speed and cost efficiency for cross-border settlements while maintaining compatibility with existing infrastructure. For example, a €10 million test transfer using XRP completed in under six seconds, compared to SWIFT's 30-hour processing timeCoinLaw, *XRP vs. SWIFT Statistics 2025*^[4]. Ripple's CTO, David Schwartz, who recently stepped down to focus on advisory roles, highlighted the XRP Ledger's potential to streamline liquidity management, particularly in emerging markets where pre-funded nostro accounts remain a barrier99Bitcoins, *Ripple Update: CTO Steps Down, XRP Gains SWIFT Access*^[5].

Despite these advancements, SWIFT's leadership has cautioned against overestimating XRP's immediate impact. The network's chief innovation officer described Ripple's legal resilience as a "marketing play" and stressed that true adoption requires neutral governance and industry-wide compliance. SWIFT's recent trials with a Layer 2 Ethereum-based solution, Linea, further underscore its cautious, multi-technology approachCoinpedia, *SWIFT vs XRP Explained: Ripple CEO Breaks Down the Market Impact*^[6]. Analysts note that while XRP's technical advantages are clear, regulatory hurdles and institutional inertia may limit its adoption in the short term. For instance, global regulators still classify XRP as a "high-risk" token in some jurisdictions, compared to stablecoins or central bank digital currencies (CBDCs)CCN, *XRP’s 2025 Reality: From Speculation to Institutional Utility*^[7].

The long-term implications of SWIFT's blockchain exploration remain uncertain. If successful, the integration of XRP or other DLTs could disrupt traditional correspondent banking models, reducing reliance on pre-funded liquidity and enabling real-time settlements. However, the most likely outcome is a hybrid system where SWIFT acts as an "orchestrator," allowing institutions to choose from multiple settlement rails based on compliance and liquidity needs. As of 2025, Ripple's ODL service has already processed $2.3 billion in cross-border transactions, with corridors active in Southeast Asia, Latin America, and the Middle EastCoinLaw, *XRP vs. SWIFT Statistics 2025*^[8]. Whether XRP becomes a default backbone for SWIFT remains speculative, but its role as a viable option in the evolving digital payments landscape is increasingly evident.