At the XRP APEX 2025 event in Singapore, Ripple CEO Brad Garlinghouse outlined XRP's potential role in international payments, predicting it could capture 14% of the current volume handled by the SWIFT system.
Key Differences Between XRP and SWIFT
SWIFT provides messaging infrastructure for cross-border money transfers but does not facilitate actual physical money transfers. For example, a transfer from the United States to Europe involves SWIFT messages to inform banks, while the actual fund transfers go through multiple intermediaries, leading to increased time and costs. Ripple adopts a different approach, allowing for both messages and funds to be transferred simultaneously between banks. Garlinghouse emphasizes that SWIFT's model keeps liquidity in banks' control, noting that real change could occur in this sector.
The Liquidity Edge of Blockchain Technology
Ripple's blockchain-based system claims to offer a faster and more efficient solution compared to traditional methods. By using XRP as a bridge currency, it allows instant and low-cost currency conversion, reducing the need for banks to maintain large amounts of local currency liquidity in various countries, thereby lowering operational costs.
Prospects and Challenges for XRP
Traditional financial systems typically separate message transmission and fund transfer operations. However, Ripple allows these processes to occur simultaneously, potentially enhancing transaction speed and transparency while minimizing risks. Nonetheless, achieving XRP's goals depends on the adaptation speed of financial markets and regulatory frameworks. Experts suggest that establishing trust in large-scale payments will play a key role in tech adoption.
During the XRP APEX 2025 event, Brad Garlinghouse outlined the significance of XRP for the future of international financial systems. The company's potential and technology could lead to substantial changes in liquidity management and global financial operations.
