Ripple and SWIFT’s battle for dominance is once again making rounds as the Chief Innovation Officer (CIO) of SWIFT, Tom Zschach, made a comment about XRP. He explained why it is hard for businesses to trust Ripple despite the SEC lawsuit dismissal.
An exchange began on LinkedIn, where a user was seen praising Ripple’s regulatory endurance. But Zschach countered by saying surviving lawsuits isn’t resilience; it is rather about neutral and shared governance.
He then pointed out that institutions will only adopt the system if the infrastructure is seen as fair, jointly managed, and supported by legal enforcement, and not because the seller has survived regulatory challenges.
Zschach also raised concerns about whether banks will actually be comfortable with using XRP, since it is not regulated money, and it’s not on the bank’s balance sheets. He then concluded that there is virtually no legal enforceability, and final settlement is not guaranteed if there is some sort of disruption
He questioned, “If tokenized deposits and regulated stablecoins scale, why would banks pay a toll to an external asset when they can settle directly in instruments they already control and trust?”
With innovative technologies like XRP ledger and RippleNet, Ripple has developed faster and more feasible cross-border transaction services, while SWIFT is leading with improved GPI tracking in transparency.
SWIFT is paving the way with neutral governance and has more than 50 years of investor trust. But in that sector, Ripple is still evolving and has mixed reactions from the investors, over Ripple’s control concerns.
Both organizations took some courageous steps recently to expand the platform. Ripple initiated to expand beyond XRP and acquire Rail for $200 million. It also applied for a US national bank charter. At the same time, SWIFT is actively testing XRP Ledger and Hedera to assess whether public blockchains can complement its global messaging network.
Thus, Ripple may outpace SWIFT in the blockchain system, but the latter holds an evolving platform with customer trust.
Banks are hesitant because XRP is not regulated money, isn’t on their balance sheets, and lacks legal enforceability for settlements.
SWIFT operates with neutral and shared governance, whereas Ripple’s is still evolving and raises concerns about centralized control.
Not entirely. While the lawsuit’s end helped, skepticism remains over governance, the use of an external asset (XRP), and a lack of final settlement guarantees.
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