Morgan Stanley has spotlighted Ripple’s XRP in ongoing discussions about cross-border payments, suggesting that the XRP Ledger could reduce processing costs by as much as 60%. This reduction would also liberate bank capital typically tied up in pre-funded accounts. If XRP were to emerge as the standard bridge currency, Morgan Stanley believes it could significantly transform the way financial institutions conduct international transactions.
The bank’s analysts have even proposed that a potential Ripple-based exchange-traded fund (ETF) could inject up to $1 trillion in liquidity into the marketplace. Such an influx would enhance trading volumes and position XRP among traditional financial assets heavily utilized by institutions.
Ripple’s CEO, Brad Garlinghouse, is even more ambitious, asserting that XRP could capture 14% of SWIFT’s substantial market share, which currently processes over $150 trillion in annual transactions. Such a significant shift in market dynamics could lead to an unprecedented level of adoption for XRP compared to any other cryptocurrency.
For investors, the rationale is clear: if Ripple succeeds in convincing banks and institutions to adopt its payment network, the increased demand for XRP could drive its price higher. This is particularly timely, as several XRP ETF applications are set to receive decisions in late October, with potential approvals acting as a significant catalyst for broader adoption.
However, SWIFT has not remained silent in response to these bold claims. The organization’s Chief Innovation Officer has downplayed Ripple’s legal wins, suggesting that “surviving a lawsuit isn’t resilience,” and emphasized that financial institutions generally prefer a neutral governance model over a system that may favor a direct competitor like Ripple.
Moreover, SWIFT is actively exploring its own blockchain solutions, with trials currently in progress for both XRP and Hedera’s HBAR. The results of these trials are expected to emerge by November and will be pivotal in determining whether SWIFT will consider integrating outside technologies or continue to rely on its traditional systems.
Despite its strengths, which include influential supporters, a clearer legal standing following extensive litigation, and potential new ETFs that could attract institutional investment, XRP faces considerable challenges. SWIFT’s entrenched position and complex regulatory, trust, and governance issues remain significant obstacles.
The months of October and November are shaping up to be crucial for Ripple. Should the company’s aspirations in banking align with favorable outcomes from its ETF approvals and positive results from SWIFT’s testing, XRP may finally achieve recognition in the mainstream global finance sector. Conversely, failure to capitalize on this momentum could leave XRP trailing behind in the competitive landscape. Currently, XRP is trading at approximately $3.0444.
