Is Ripple Replacing SWIFT? All You Need to Know About XRP & SWIFT

Is Ripple replacing SWIFT, truly? That’s the question many in the crypto community are asking. 

On one side, you have SWIFT, a decades-old messaging network that powers most of the world’s international bank transfers. On the other, you have Ripple and its digital asset XRP, which promise to make those same transfers instant and low-cost.

The debate is getting more and more heated. Bold comments from Ripple’s CEO Brad Garlinghouse, and skeptical remarks from SWIFT’s leadership just add fuel to the fire. 

Then, you add in news that SWIFT is experimenting with blockchain technology, including testing Ripple’s XRP Ledger, and you can see why speculation is running high.

But is Ripple really in a position to replace SWIFT, or are the two systems destined to coexist? To answer that, we need to look at how each works, what their strengths are, and why XRP is seen as a serious challenger.

Ripple vs SWIFT: Quick comparison

What is SWIFT?

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. Just saying that is anything but swift.

Founded in the 1970s, it provides a secure messaging system that lets banks around the world communicate payment instructions. Today, SWIFT connects over 11,000 financial institutions in more than 200 countries. It’s safe to say it’s the backbone of international finance.

I need to make something clear. SWIFT itself doesn’t move money. Instead, it transmits standardized messages between banks that trigger account debits and credits.

Because payments often travel through a chain of correspondent banks, the process can involve multiple steps, compliance checks, and intermediary fees. As a result, international transfers can take 2–5 business days and cost $20–$50 or more in fees.

To be fair, SWIFT has tried to modernize. Its Global Payments Innovation (gpi) initiative has sped up some transfers to same-day delivery and added payment tracking features. 

Still, compared to newer blockchain-based systems, SWIFT transactions can look slow and expensive. What keeps it dominant is its trust and scale. Almost every major bank is connected, and the system has proven reliable for nearly 50 years.

What is Ripple and XRP?

Ripple, founded in 2012, offers a very different model for cross-border payments. Instead of simply sending messages about money movements, Ripple’s technology can actually transfer value in real time using the XRP Ledger (XRPL).

At the center of this system is Ripple’s solution called On-Demand Liquidity (ODL). ODL uses XRP as a bridge currency between two different fiat currencies. 

For example, if a bank in the U.S. wants to send euros to Europe, it can convert dollars into XRP, transfer the XRP across the blockchain in a few seconds, and convert it into euros on the other side.

This approach removes the need for banks to hold pre-funded nostro/vostro accounts in different countries. It removes a major inefficiency of the traditional system. Settlement takes 3–5 seconds, not days, and the cost of each transaction is just a fraction of a cent. That’s very different from SWIFT’s fees and timelines.

Because XRP transactions are validated on a public ledger, they’re transparent and can be tracked in real time. The network is also available 24/7/365, unlike SWIFT, which largely runs on banking hours. 

For these reasons, Ripple and XRP are often seen as a faster, cheaper, and more modern alternative to the SWIFT system.

Why people think XRP could replace SWIFT

Speed and cost advantages

The most obvious reason people compare XRP vs SWIFT is performance. 

A typical SWIFT transfer can take several days and cost $20–$50 or more, especially when multiple correspondent banks are involved. By contrast, the XRP Ledger settles payments in 3–5 seconds at a cost of just a fraction of a cent. 

For businesses that handle large volumes of payments or remittances, the difference in speed and fees is huge. Ripple’s system essentially removes the bottlenecks that have frustrated cross-border money movement for decades.

Transparency and availability

Ripple also challenges SWIFT when it comes to transparency. On SWIFT, payments disappear into the system until they’re confirmed (unless the bank offers gpi tracking). Even then, visibility depends on which institutions in the chain support it. 

With Ripple and XRP, every transaction is recorded on the public XRP Ledger and can be tracked in real time. 

Availability is another advantage. The Ripple network runs 24/7/365, while SWIFT is tied to traditional banking hours, weekends, and holidays. This always-on nature of blockchain makes XRP attractive for global commerce and remittances.

Adoption and partnerships

Another reason people frame this as XRP vs SWIFT is adoption momentum. Over the past decade, more than 100 banks and payment providers have piloted Ripple’s technology. Notable examples include Santander, SBI Holdings, and even money transfer giant MoneyGram, which have used Ripple’s On-Demand Liquidity (ODL) for faster forex settlement.

Ripple’s leadership has fueled this narrative too. CEO Brad Garlinghouse has repeatedly stated that Ripple’s goal is not to partner with SWIFT but to replace it. 

In mid-2025, he even projected that XRP could capture 14% of SWIFT’s global payments volume within five years. It’s a bold claim that got people’s attention. Statements like these keep the spotlight on the rivalry and encourage speculation that SWIFT and XRP are on a collision course.

Community speculation and hype

Beyond the numbers, the XRP community plays a huge role in driving the “Ripple replacing SWIFT” conversation. Each time a new bank joins RippleNet or SWIFT executives mention blockchain, social media lights up with predictions that SWIFT is about to lose ground.

Institutional interest in XRP is also on the rise. Q1 2025 saw over $214 million in inflows into XRP-based funds. It shows that confidence is growing among both retail investors and institutions.

When Garlinghouse videos surface speculating about market share, or when SWIFT’s CIO takes shots at Ripple, debates erupt across X. This constant back-and-forth has created a narrative where Ripple and SWIFT are cast as rivals in a financial showdown.

Challenges and reality check

Bank hesitation to use XRP

Even with its speed and low costs, many banks are reluctant to adopt XRP for settlement. 

The issue is trust: XRP is an external token that doesn’t sit on a bank’s balance sheet. As SWIFT CIO Tom Zschach put it:

“Banks will ask whether they’re comfortable outsourcing settlement finality to a token that isn’t a deposit and isn’t regulated money.” 

For most institutions, that hesitation is significant.

Regulatory uncertainty

Ripple has also had regulatory issues, most notably the SEC lawsuit that dragged on from 2020 to 2023. The partial court victory gave XRP clarity in the U.S., but the years of uncertainty made many banks cautious. Different jurisdictions still have different rules on crypto assets, which complicates Ripple’s global expansion.

SWIFT’s entrenched position

The biggest challenge is SWIFT’s scale. 11,000+ banks in 200 countries and decades of established trust. SWIFT has already modernized with its gpi upgrade and continues to test blockchain solutions. 

Competing with a system so deeply embedded in banking infrastructure is far harder than just offering faster technology.

Alternative solutions

Ripple also faces competition from other innovations like stablecoins, tokenized deposits, and CBDCs. Since these tie directly to regulated money, many banks may prefer them over paying what Zschach called a “toll” to XRP. 

Ripple’s own ecosystem also includes a dollar-backed stablecoin, RLUSD. It’s built to integrate with On-Demand Liquidity (ODL) for faster, more predictable settlement.

SWIFT’s response and collaboration

Upgrades to the existing system

SWIFT isn’t ignoring the competition. Its gpi program has already reduced many transfers from days to hours and added real-time tracking. These upgrades keep SWIFT relevant while Ripple focuses on speed and cost savings.

Experiments with blockchain

SWIFT has also tested blockchain solutions. In 2019, it ran a trial with R3’s Corda platform, which could settle transactions using XRP. While SWIFT didn’t adopt XRP directly, the test showed it was open to integrating with distributed ledger technology.

2025 blockchain pilots

More recently, SWIFT began testing the XRP Ledger and Hedera Hashgraph in pilot programs. These trials don’t mean SWIFT is adopting XRP, but they prove the cooperative is exploring blockchain as a way to improve efficiency. 

SWIFT has stressed that these are exploratory, not production-ready. But even acknowledging XRP’s potential is a big shift.

Likely outcome

Rather than being replaced, SWIFT is adapting. Its massive network and trusted governance give it staying power, but by testing systems like XRP and RippleNet, it signals a willingness to evolve. 

The future may look less like Ripple vs SWIFT and more like SWIFT and XRP coexisting in different roles.

The bottom line: Coexisting, not replacing

So, is Ripple really replacing SWIFT? The answer is more complicated than the hype suggests.

On paper, Ripple’s XRP Ledger outperforms SWIFT in almost every technical category: 

• Settlement in seconds
• Fees that cost pennies
• Round-the-clock availability

Plus, there’s Ripple’s growing list of bank pilots and Brad Garlinghouse’s bold claims about capturing market share. So it’s easy to see why some frame this as XRP vs SWIFT in a head-to-head fight.

But technology isn’t the only factor. SWIFT’s 11,000+ bank network, decades of trust, and legal governance give it staying power that Ripple can’t match overnight. Banks are cautious about relying on an external cryptocurrency, and many may prefer alternatives like tokenized deposits or stablecoins.

At the same time, SWIFT isn’t standing still. With gpi upgrades and blockchain trials that now include the XRP Ledger, it’s clear the cooperative is adapting. This suggests the most likely future isn’t Ripple replacing SWIFT entirely, but Ripple and SWIFT coexisting. 

Each will fill different roles in cross-border payments. Ripple may capture corridors where speed and cost are critical, while SWIFT remains the backbone trusted by the world’s banks.

For everyday users, that rivalry is a win. In the end, Ripple may not topple SWIFT, but it has already forced it to evolve. And that evolution includes providing a better service to its customers.