SWIFT Boss Says Banks Won’t Trust Ripple’s Rails

Fintech

A sharp critique from SWIFT’s chief innovation officer, Tom Zschach, has reignited debate over Ripple’s role in global payments.

Writing on LinkedIn, Zschach dismissed Ripple’s legal survival as proof of strength, instead emphasizing that financial institutions want infrastructure free from corporate control.

Neutral Rails vs. Corporate Platforms

“Surviving lawsuits isn’t resilience,” Zschach wrote, adding that banks prefer “neutral, shared governance” rather than operating on a competitor’s rails. Unlike Ripple, SWIFT is jointly governed by thousands of member banks, a structure he argued fosters industry-wide trust.

Compliance Beyond Regulators

Zschach also challenged the idea that compliance simply means working with watchdogs. True compliance, he said, requires building systems where an entire sector agrees on common standards — something Ripple, in his view, cannot provide as a single-company solution.

Public Chains Under Fire

While acknowledging the innovation in blockchain technology, Zschach dismissed the idea that public chains alone could carry global finance. Without enforceability, privacy, and regulatory alignment, he described them as “fast engines with no cockpit.” His stance suggests traditional finance will borrow from blockchain where useful, but only on its own terms.

Ripple’s Decentralization Debate

Ripple maintains that the XRP Ledger is decentralized, though critics have long argued the company retains outsized influence over its ecosystem. Zschach’s comments play directly into that narrative, highlighting why banks may hesitate to adopt Ripple’s rails despite its growing regulatory wins.

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Author

Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

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