SWIFT CIO Claims Banks Will Skip XRP, Favor Internal Rails & Stablecoins
SWIFT Chief Innovation Officer Tom Zschach recently stirred up the debate by questioning the role of Ripple’s XRP...
Quick overview
- SWIFT's Tom Zschach questioned the viability of Ripple's XRP for banks, stating it doesn't meet regulatory standards and isn't a deposit.
- He emphasized that banks prefer using internal payment systems, tokenized deposits, or regulated stablecoins they trust.
- Despite concerns, industry insiders believe XRP still has potential, as it offers 24/7 settlement and eliminates the need for pre-funded accounts.
- Ripple's ongoing efforts in regulatory compliance and the introduction of its RLUSD stablecoin aim to enhance its appeal to banks.
SWIFT Chief Innovation Officer Tom Zschach recently stirred up the debate by questioning the role of Ripple’s XRP settlement rails in global banking. On LinkedIn, Zschach said banks won’t use XRP, citing: “It’s not a deposit, not regulated money, and doesn’t sit on their balance sheet.”
He said banks will use internal payment rails, tokenized deposits or regulated stablecoins they already trust. While stablecoins like USDC can integrate with new infrastructure, Zschach asked if outsourcing settlement to XRP would meet regulatory and risk standards.
Industry insiders note this doesn’t necessarily mean XRP is dead, but that banks are cautious when it comes to decentralized settlement solutions.
7/11 – And the war of words is heating up. 🔥
SWIFT’s CIO recently called Ripple a “dead chain walking.”
His argument? Banks need neutral governance, not rails controlled by one company.
Ripple fans shot back: XRP Ledger has survived 10+ years of scrutiny.— CCN (@CCNDotComNews) September 4, 2025
XRP vs. Bank Rails
Critics point out the inefficiencies in the global banking system. Banks pre-fund trillions of dollars across nostro and vostro accounts to process cross-border payments, leaving vast sums idle and unproductive. XRP eliminates the need for pre-funded accounts by being a neutral bridge for liquidity.
- XRP operates outside a bank’s balance sheet
- Settlements run 24/7/365, no business hour restrictions
- Cheaper than bank rails
Analysts think Ripple can take up to 15% of SWIFT’s market share in 5 years. Banks like JPMorgan and HSBC can build their own rails but they are often isolated and still have liquidity inefficiencies. XRP’s blockchain based solution allows for cross-institution settlement without trapped capital.
Compliance and 24/7 Settlement
Zschach said “liquidity is one thing; legal enforceability is another”. Ripple has been working on regulatory compliance for over 10 years, launched ODL corridors and got licenses in major jurisdictions. Its newly launched RLUSD stablecoin is part of a broader strategy to be compliant and efficient.
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🚨 SWIFT CIO Tom Zschach:
“Surviving lawsuits isn’t resilience. Neutral, shared governance is.
Institutions don’t want to live on a competitor’s rails.”This is the final nail in the coffin for Ripple’s institutional narrative.#LINK #SWIFT #XRP
— Agos (@agosto1002) September 3, 2025
Tokenized deposits and conventional stablecoins have restrictions outside business hours. XRP’s ledger processes transactions 24/7, gives banks operational flexibility that internal rails can’t.
Community members say SWIFT is a messaging network not a settlement platform, relies on pre-funded accounts. XRP’s infrastructure is a real alternative to bridge global liquidity efficiently.
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