Why Banks Are Likely to Opt for XRP Instead of the SWIFT System

crypthub

about 10 hours ago

Payment System Challenges

Digital money is expanding faster than the legacy cross‑border infrastructure that moves it. SWIFT, launched in 1973, relies on multiple intermediaries, takes two to five business days and costs $25‑$50 plus hidden FX fees. The slow, opaque process traps trillions in capital, driving banks to look for faster, cheaper solutions.

Ripple’s Rise and Regulatory Clarity

Founded as OpenCoin in 2012, Ripple built the XRP Ledger to enable instant, low‑cost transfers. A five‑year SEC case ended in 2025 confirming XRP is not a security, giving the network regulatory certainty. Ripple now has over 300 partners, a $40 billion valuation and a regulated stablecoin, RLUSD, worth $1.4 billion.

XRP as a New Payment Rail

XRP settles in three to five seconds at fractions of a cent, removing intermediaries and pre‑funded accounts. RippleNet swaps fiat for XRP, moves value on‑chain, then reconverts to local currency, unlocking trapped liquidity. Recent upgrades add permissioned domains, token escrow and KYC/AML‑compliant DEXs for banks. Executives project XRP could capture 14‑20 % of SWIFT’s $150 trillion annual flow within five years, making it a viable global alternative.