XRP's Potential to Replace SWIFT Sparks Debate, Driven by Efficiency and Cost Savings

As the global financial system evolves towards faster and more efficient payment solutions, XRP has emerged as a potential disruptor to SWIFT, the longstanding leader in cross-border transactions. The latest speculation on XRP’s potential to overtake SWIFT has reignited debate, driven by a bold claim from DigitalIG, a former London-based fund manager and outspoken XRP advocate.

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“When XRP replaces SWIFT, it will be valued beyond $15,000 per token,” he tweeted. He highlighted that XRP’s design allows for such valuations, as each token can be divided into 1,000,000 smaller units known as drops.

Since its establishment, SWIFT has been the backbone of global finance, connecting over 11,000 financial institutions across more than 200 countries. It processes over $5 trillion in transactions daily, translating to an annual volume of approximately $1.25 quadrillion. However, SWIFT’s reliance on a correspondent banking network often results in inefficiencies, delays, and high costs.

These limitations have led financial institutions to explore alternative solutions, with Ripple and its native asset, XRP, emerging as a strong contender by providing real-time settlement using XRP as a bridge currency. Transactions on RippleNet are completed within seconds at a fraction of the cost associated with SWIFT’s traditional multi-day process.

That said, the idea of XRP replacing SWIFT has also been supported by various financial analysts, with some estimating that if XRP were to handle 5-10% of SWIFT’s annual transaction volume, its price and market capitalization would need to rise significantly.

In October 2024, a global investment bank identified Ripple as one of SWIFT’s strongest competitors, citing its On-Demand Liquidity (ODL) service as a key advantage. Additionally, in January 2025, the CEO and cio of a billion-dollar investment fund expressed interest in supporting XRP if it replaced SWIFT.

However, despite its potential, several hurdles must be overcome for XRP to achieve such a valuation. Regulatory clarity remains a significant obstacle, particularly in the U.S., where Ripple has been engaged in a lengthy legal battle with the Securities and Exchange Commission (SEC). A favorable resolution could boost institutional confidence in XRP and accelerate adoption.

Scalability is another critical factor. SWIFT processes enormous transaction volumes daily, and for XRP to compete at this level, the XRP Ledger (XRPL) must be capable of handling similar loads reliably. While the XRPL already enables rapid settlements, further enhancements in liquidity management and infrastructure would be necessary to match SWIFT’s scale. Ripple’s ODL service is actively addressing these challenges, but more work is required before XRP can fully replace SWIFT.

According to the analyst's forecast, if XRP were to become the primary medium for cross-border transactions, its value could see a significant surge. This speculation is based on the efficiency and cost-effectiveness that XRP brings to the table compared to traditional banking systems.

The analysis focuses on the current limitations of the SWIFT system, which is often criticized for its high fees and slow transaction times. In contrast, XRP transactions are known for their speed and lower costs, making it an attractive alternative for financial institutions and individuals alike.

The forecast suggests that if Ripple’s technology were to be widely adopted, it could handle a substantial portion of global remittances, leading to a dramatic increase in the demand for XRP.

Ripple Labs, the company behind XRP, has been actively working on partnerships and integrations with various financial institutions. These efforts are aimed at expanding the use of XRP in cross-border payments, which could further boost its value.

The success of XRP in replacing SWIFT would depend on its ability to provide a seamless and secure transaction experience, as well as its adoption by major financial players.

The forecast is based on the assumption that XRP’s technology and infrastructure are robust enough to handle the volume of transactions that SWIFT currently processes. If Ripple can demonstrate its capability to manage such a large-scale operation, it could attract more users and investors, driving up the value of XRP.

Regulatory approval and compliance would be crucial factors in determining the success of XRP in this regard.

The analysis underscores the potential of XRP to revolutionize the global remittance industry. By offering a faster, cheaper, and more efficient alternative to traditional banking systems, XRP could become a dominant player in the cross-border payments market. However, this scenario is contingent on several factors, including technological advancements, regulatory support, and widespread adoption by financial institutions.