SWIFT is developing a blockchain ledger designed to handle real-time settlements and support tokenized assets. The project, built in partnership with Consensys, aims to upgrade the decades-old financial network and compete with Ripple’s (XRP-USD) fast, low-cost transaction system.
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SWIFT’s network connects more than 11,000 institutions across 200 countries, handling the bulk of cross-border transactions worldwide. Founded in 1973 in Belgium, it became the global standard for bank-to-bank communication. The system does not move money itself but transmits secure payment messages between banks using unique SWIFT codes.
The new blockchain infrastructure is meant to keep SWIFT relevant as digital currencies and tokenized assets reshape payments. It focuses on interoperability across public and private chains while allowing banks to adopt new technology without replacing their existing systems.
Ripple Strengthens Its Hold on Fast Payments
Ripple continues to lead the market for blockchain-based remittances through its XRP token and On-Demand Liquidity network. The technology allows institutions to settle international transfers within seconds while reducing costs and removing the need for pre-funded accounts.
Financial giants such as SBI Remit in Japan and Pyypl in the Middle East and Africa already use XRP for cross-border transfers. Ripple’s network has become a preferred solution for markets where speed, liquidity, and lower fees are critical.
XRP’s use extends beyond payments. Travel and loyalty firms such as Webus/Wetour plan to integrate XRP into reward programs, allowing users of Air China’s PhoenixMiles to redeem blockchain-based points for services like airport transfers. SBI Holdings has also expanded XRP’s use across its subsidiaries and maintains one of the largest corporate XRP holdings.
SWIFT Expands Reach to Compete With Ripple
SWIFT’s blockchain project is designed to preserve its central role in international banking. The company’s reach gives it a major advantage in adoption, as most global institutions already depend on its network.
Ripple’s technology remains faster and more efficient, but SWIFT’s approach offers flexibility. Its blockchain will support a variety of regulated stablecoins and tokenized assets rather than rely on a single token like XRP. This could appeal to traditional banks that prefer broader compatibility with existing regulatory frameworks.
SWIFT’s project also focuses on enhancing liquidity and improving transparency within its network, aiming to match the settlement efficiency of Ripple’s On-Demand Liquidity system.
SWIFT Faces Tough Challenges Ahead
Despite its scale, SWIFT faces significant technical and regulatory obstacles. Integrating blockchain with its legacy infrastructure requires complex coordination with thousands of institutions while ensuring compliance with strict financial regulations.
Different jurisdictions have varying rules for digital assets and tokenized settlements, which could delay implementation. Many banks remain cautious about adopting new blockchain infrastructure until its stability and benefits are proven.
SWIFT must also contend with Ripple’s growing foothold. Ripple’s partnerships in Asia and the Americas have built a strong base of liquidity and institutional trust. Unless SWIFT can show clear efficiency gains, its blockchain may be seen as a modernization effort rather than a true rival.
Ripple and SWIFT Could End Up Sharing the Market
SWIFT’s blockchain initiative could reshape global payments by offering a regulated digital settlement platform that complements existing systems. Ripple may continue to dominate regions and use cases where speed and liquidity matter most.
Rather than replacing one another, the two systems may coexist. SWIFT’s global reach and Ripple’s blockchain efficiency represent different sides of the same trend: the modernization of cross-border finance.
In the end, the winner will depend less on technology and more on who earns the confidence of financial institutions and adapts fastest to the new digital economy.
At the time of writing, XRP is sitting at $2.8234.
