SWIFT adopts Ripple’s playbook – but won’t replace banks

SWIFT has announced a new global payments scheme that enables consumers and small businesses to make cross-border payments as fast and predictable as domestic payments.

The initiative, unveiled on January 29, will begin in stages in 2026, with a minimum viable product planned for the first half of the year. More than 40 banks are already participating in the development of this framework.

At first glance, this announcement appears to be a routine infrastructure upgrade. In reality, this signals a strategic shift and reflects many of the issues that Ripple has identified over the years.

SWIFT international payments will change dramatically

SWIFT’s new payment scheme targets Cross-border payments by consumers and small businessesthe region has traditionally suffered from slow deliveries, opaque fees and unpredictable exchange rates.

Under this system, participating banks will adhere to a strict rulebook. These rules include up-front disclosure of fees and foreign exchange rates, guaranteed full shipping, and end-to-end visibility of payment status.

Simply put, what customers need to know is: How much are they paying, how much will the recipient receive, and when will the payment arrive?before remittance.

Is SWIFT aware of the blockchain threat?

Cross-border retail payments have become a weakness for banks.

Domestic payments are now cleared in seconds in many countries. International money transfers still take several days, go through multiple intermediaries, and often lose value along the way.

Fintech companies and blockchain-based networks have taken advantage of this gap. Ripple, in particular, has long argued that the existing correspondent banking model no longer meets modern expectations.

SWIFT’s announcement reflects growing pressure to close that gap.

The same issues identified in Ripple are now acknowledged by SWIFT

Ripple has long argued that cross-border payments are broken for three main reasons.

• The sender rarely knows the full amount in advance.
• Payments move slowly and unpredictably.
• Banks will need to pre-fund accounts across borders and tie up capital.

SWIFT’s new scheme is first two problems: Transparency and predictability.

This adjustment is no coincidence. This shows that the problems highlighted by Ripple are real, even if SWIFT is choosing a different solution.

Despite the improvements, SWIFT’s model does not change how funds are actually settled between banks.

Funds continue to move through the correspondent banking chain. Banks will continue to rely on foreign currency pre-funded accounts. Capital will continue to be locked up to support cross-border flows.

scheme is improved feeling of payment For our customers. Doesn’t change How banks manage liquidity Behind the scenes.

This limit determines where SWIFT’s solution ends.

Ripple’s bank pilot is worth watching

Ripple’s latest banking partnership takes a different approach.

Ripple targets targets rather than focusing on messaging standards and rule enforcement. Payment mechanism. Through blockchain-based rails and regulated stablecoins, we aim to reduce the need for pre-funded accounts.

Banks in regions such as Saudi Arabia, Switzerland and Japan are testing this model in controlled environments. These pilots are not meant to replace SWIFT. The aim is to reduce capital costs in a particular corridor.

Ripple’s value proposition focuses on the balance sheet, not the interface.

Ripple’s narrowing path

SWIFT’s move is raising expectations across the industry. Transparency and reliable delivery are fundamental requirements.

This reduces Ripple’s ability to differentiate purely on speed and visibility. At the same time, the demand for alternative payment models is not going away.

In capital-intensive or emerging market corridors, liquidity efficiency remains an open question. This is where Ripple’s approach continues to be attractive to banks.

Overall, SWIFT does not employ blockchain. not integrated $XRP. And we’re not abandoning correspondent banking.

Instead, it recognizes the same structural problems that Ripple has been pointing out for years, but chooses to solve them in a way that preserves the existing system.