Ripple CEO Debunks SWIFT Partnership, XRP To Dramatically Change Payments Infrastructure

Source Bitcoinist

Ripple CEO Brad Garlinghouse has made it clear that Ripple is not partnering with SWIFT, the global messaging system considered the backbone of cross-border banking. According to a clip at an old Ripple Swell event now circulating among XRP investors on the social media platform X, Garlinghouse emphasized that Ripple is not working with SWIFT but instead aims to replace it. This comes as Ripple is starting to increase its global push, expanding partnerships with banks and financial firms while also securing a new US patent on instant cross-border payments.

Ripple Targets SWIFT’s Flaws

Garlinghouse pulled no punches as he detailed the shortcomings of SWIFT’s infrastructure, describing it as slow, costly, and prone to human error. “SWIFT has a reported error rate of 6%,” he noted, citing insights from a Fortune 50 CFO who observed an even higher 11% failure rate in their company’s cross-border transactions. These failures often demand manual intervention, leading to delays and unnecessary costs.

However, Garlinghouse pointed to an even deeper flaw in the traditional system with trapped liquidity. According to him, estimates from major consulting firms suggest as much as $10 trillion is currently locked in nostro accounts worldwide just to support the existing correspondent banking model. Ripple, through XRP and its On-Demand Liquidity (ODL) solution, aims to unlock this capital. 

In a move that backs this ambition, Ripple recently secured a US patent for trust-based, instant cross-border payments, which is a system that does not require full network confirmation to execute transactions. This innovation could allow XRP to fully bypass the delays inherent in legacy systems, further making it a serious replacement for SWIFT.

Ripple’s Global Network Expanding

Ripple’s global expansion tells its own story. Banks in the Philippines, Brazil, India, Mexico, and the UAE have already adopted Ripple’s solutions, with XRP being used to facilitate real-time international settlements without the need for pre-funded accounts.

However, Ripple isn’t the only player progressing, as SWIFT also seems to be stepping up. In response to blockchain challengers like Ripple, SWIFT has teamed up with Chainlink to improve its infrastructure. 

SWIFT’s partnership with Chainlink is looking to take advantage of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for transfers of tokenized assets across multiple blockchains. 

The financial messaging giant has already run pilot programs, including one with UBS Asset Management, that show promise in bringing blockchain capabilities into the legacy system. These developments show that SWIFT is not ready to cede its position, but the company is only now reacting to a race that Ripple has already been running for years.

On the other hand, Brad Garlinghouse also stated in a recent summit that Ripple is aiming to take over SWIFT’s customer base. Particularly, the company is aiming to take over at least 14% of SWIFT’s current cross-border volume within the next five years.

Ripple
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Moving With Stocks, But Ethereum’s Correlation Is FadingBitcoin has been showing notable correlation to the stock equities recently, but data shows Ethereum is charting a more independent path. Bitcoin & Ethereum Showing Different Degrees Of
Author  NewsBTC
7 Month 10 Day Thu
Bitcoin has been showing notable correlation to the stock equities recently, but data shows Ethereum is charting a more independent path. Bitcoin & Ethereum Showing Different Degrees Of
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Philippines' GDP Growth Rises to 5.5% in Second Quarter of 2025The Philippine economy expanded at a marginally faster pace in the second quarter of 2025, with GDP growing 5.5% year-on-year.
Author  Mitrade
8 Month 07 Day Thu
The Philippine economy expanded at a marginally faster pace in the second quarter of 2025, with GDP growing 5.5% year-on-year.
placeholder
Asia Stocks Cautious Before China Tariff Deadline; Australia Sets Record HighMost Asian stock markets were little changed on Monday as investors looked ahead to the looming expiration of the U.S.-China tariff truce, while Australian equities climbed to new highs on rate-cut expectations.
Author  FXStreet
3 hours ago
Most Asian stock markets were little changed on Monday as investors looked ahead to the looming expiration of the U.S.-China tariff truce, while Australian equities climbed to new highs on rate-cut expectations.
placeholder
Oil Prices Extend Losses as Traders Eye US-Russia Summit, Inflation DataOil prices declined in Asian trading on Monday, adding to sharp losses from last week as expectations of progress in U.S.-Russia talks dampened geopolitical risk premiums, while weak inflation data from China weighed on demand sentiment.
Author  FXStreet
3 hours ago
Oil prices declined in Asian trading on Monday, adding to sharp losses from last week as expectations of progress in U.S.-Russia talks dampened geopolitical risk premiums, while weak inflation data from China weighed on demand sentiment.
goTop
quote