Will XRP Fix SWIFT’s ‘Last Mile’ In The $155 Trillion Market?

A recent post from SWIFT, the biggest financial conglomerate in Europe, highlighted one key hurdle that blockchain technology can easily solve. Known as the ‘last mile’, this definition revolves around a challenge after the money is received by the beneficiary bank.

In SWIFT’s explanation, the network’s messaging layer just got way faster with the ISO 20022 implementation. The gold messaging standard encircles roughly 80% of SWIFT-compliant major banks, with 100% reach in focus by late 2026. However, the ‘last mile’ dilemma occurs when funds aren’t processed due to legal regulations or simply old-school infrastructure.

With the new SWIFT payment scheme, banks like JP Morgan Payments, Garanti BBVA, Santander & HSBC are piloting the instant payment rails. Ripple’s XRP Ledger has a multi-faceted role in these trials: providing on-demand liquidity (ODL), XRP’s native coin might as well be included as a bridge asset along with other popular DLT-based tokens.

Certainly, Ripple’s blockchain tech centers around the solving of similar issues that were just described by SWIFT. Inefficiencies like lack of transparency, high transaction costs & slow payment time windows can be resolved with Ripple’s trifecta: the decentralized public ledger (XRPL), enterprise-grade payment solution (RippleNet) & the native XRP token.

While SWIFT’s legacy transfer method could take up to 3-5 business days, XRP’s standard transaction processing time revolves around 3-5 seconds. This difference is key. However, SWIFT’s previous testing of XRP, HBAR & XLM have confirmed the thesis that the largest European financial conglomerate is not looking to pick one lucky winner.

Ripple’s addition to SWIFT could be pieced together as a big part of the interoperability puzzle. Ripple’s CEO Brad Garlinghouse previously predicted a 14% capture of SWIFT’s $155 trillion annualized trading volume, while the current daily trading volume on XRP revolves around $2 - 3 billion a day. Right now, XRP Ledger is able to handle 1,500 transactions per second.

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