The 50-year old European banking giant SWIFT is actively exploring blockchain technology to make global payments immediate for everyone regardless of location.
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The technical reckoning that they are facing now doesn’t miss Ripple’s XRP in any way – with the altcoin already employed as a bridge asset on multiple major banks across the globe, the liquidity provider role seems more than plausible.
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How SWIFT’s Linea Deal Exposed Liquidity Issues
Last year, SWIFT announced a direct partnership with Linea, a Layer-2 protocol built atop of Ethereum (ETH). While covering many technical bases, banking experts & crypto enthusiasts argue whether Linea’s chain can act as a liquidity provider in the same way as the XRP-powered On-Demand Liquidity (ODL) plugin.
Every transaction on Linea costs a double fee in a technical sense, as the Layer-2 confirmed transaction is sent back to Ethereum’s Layer-1 for final verification before processing. Meanwhile, transmissions on Ripple’s XRP Ledger take up around 3 to 5 seconds, always costing fractions of a cent – not depending on how busy the chain actually is.
XRP Stands Out As SWIFT’s Top Liquidity Choice
Handling from $5 to $10 billion in daily trading volume on average, XRP’s status as a major player in the cross-border field is crystal clear. SWIFT may be feeling the urgency to explore alternative blockchain solutions besides Linea for liquidity, as the previously introduced Low-Value Payments scheme didn’t meet expectations, according to multiple reports.
If Ripple’s XRP is there to solve SWIFT’s instant liquidity issues, this could mean a gigantic percentage of SWIFT’s regular annualized trading volume flowing through the XRP Ledger. Estimated at roughly $155 trillion, this exceeds crypto’s general market capitalization 50 times – a market capitalization even the largest digital currencies can only dream of.
Moving value across borders without pre-funded accounts has become a key target for SWIFT ever since they rolled out the ISO 20022 global messaging standard. The new gold standard required compliant banks to adopt a payment route for immediate transactions, while the pilot version of the Digital Payments Program featured 30 banks Ripple had worked with.
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A popular XRP community analyst is arguing that SWIFT — the world’s biggest cross-border messaging network — is facing a major challenge. To stay relevant in the age of instant payments, SWIFT may need to add XRP as a “liquidity layer” instead of just staying a simple messaging service.
The analyst points to SWIFT’s recent attempt to build a global shared ledger using Linea, an Ethereum-based Layer-2 blockchain. That project reportedly struggled with large-scale transfers and was scaled back to only low-value or micro-payments. Critics say Linea doesn’t solve the real problem of instant liquidity across currencies the way XRP does.
It would mean SWIFT using XRP as a fast, neutral bridge asset — similar to how On-Demand Liquidity (ODL) works today. Banks could send money instantly without tying up billions in pre-funded accounts overseas. Transactions would settle in seconds instead of days, with tiny fees.
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