Morgan Stanley has recently highlighted the potential of Ripple (XRP) as a formidable alternative to SWIFT, particularly in the realm of cross-border transactions where speed is increasingly essential. The financial institution’s latest report has garnered attention for its optimistic assessment of XRP’s capability to streamline payment processes.
Within the review, the XRP Ledger was praised for its capacity to potentially cut processing costs by as much as 60%. Furthermore, the report suggests that adopting XRP as a standard bridge currency could enable banks to liberate capital by not requiring pre-funded fiat accounts. This insight elevates XRP’s status in the ongoing conversations about modernizing financial systems.
Market analysts are closely observing what impact increased liquidity on Ripple’s network might entail. Morgan Stanley’s experts have speculated that a successful launch of a Ripple-based exchange-traded fund (ETF) could usher in up to $1 trillion in market liquidity. Such a surge could significantly bolster XRP’s position against traditional financial systems. Ripple’s CEO, Brad Garlinghouse, has echoed this sentiment, projecting that Ripple may capture as much as 14% of SWIFT’s overwhelming $155 trillion annual transaction volume.
With eleven XRP ETF proposals awaiting decisions in late October 2025, Bloomberg analysts have indicated a 95% likelihood of approval. This possible influx of capital presents a pivotal moment for Ripple, influencing whether XRP can gain traction among financial institutions that traditionally rely on SWIFT.
However, it is worth noting that Morgan Stanley’s anticipated $1 trillion liquidity boon would still represent only 25% of the total global crypto market cap. On the other hand, SWIFT has acknowledged its exploration of blockchain technologies and is testing solutions, including those from Ripple and Hedera, with results expected by November 2025.
Amidst these developments, SWIFT’s Chief Innovation Officer recently cast doubt on Ripple’s progress by stating that simply surviving legal issues does not equate to being resilient. He emphasized that institutions would not want to operate on a competitor’s payment rails, highlighting the competitive landscape that Ripple faces.
As both entities finalize their assessments, the outcomes could redefine the future of cross-border payments, particularly for XRP. As the fintech space continues to evolve, the next few months are set to reveal significant shifts in how financial transactions may be conducted globally.
