The recent surge of XRP beyond its long-standing resistance of $3.40 represents more than just a numerical achievement; it signifies Ripple’s transformation from a disruptive newcomer to a formidable opponent against traditional financial systems like SWIFT.
On July 18, XRP reached an unprecedented high of $3.65 and has maintained its position above $3.40. This price achievement occurs amid Ripple’s global expansion through cutting-edge payment technologies, strategic partnerships, and the increasing real-world application of XRP in financial transactions. Ripple is now targeting up to 14% of the global cross-border payments market, challenging SWIFT’s longstanding supremacy.
Ripple’s Strategy Against SWIFT
In a recent summit, Ripple CEO Brad Garlinghouse outlined Ripple’s ambition to capture up to 14% of SWIFT’s current cross-border transaction volume within five years. SWIFT has historically led international money transfers via a messaging system that coordinates between correspondent banks. Ripple, however, offers an integrated infrastructure with its On-Demand Liquidity (ODL) network, leveraging XRP as a bridge currency. This innovation eliminates the necessity for pre-funded nostro accounts and accelerates transactions to just seconds, with nominal fees averaging $0.0002.
SWIFT transactions often require days and incur significant costs; Ripple’s solution is quicker, more economical, and efficient. As highlighted in an XRP 101 guide shared on X by crypto analyst John Squire, XRP’s primary advantage is facilitating near-instant, low-cost international transfers, appealing to traditional banks and financial institutions.
Ripple’s Growing Role in Banking
Recent advancements in the banking sector illustrate Ripple’s progress toward its aim of securing a 14% share of the $150 trillion cross-border payments market. Ripple’s increasing use in remittances is particularly evident in regions with notable banking inefficiencies.
For example, in the Philippines, UnionBank has become the first fully licensed virtual-asset bank to adopt RippleNet and ODL for quicker inbound transfers. Another Filipino bank, ChinaBank, in partnership with Qatar National Bank, has implemented XRP-backed transfers, removing intermediary banks from transactions between Qatar and the Philippines.
In India, significant private banks such as Yes Bank and Axis Bank are utilizing XRP to facilitate live remittance pathways connecting the country to Southeast Asia, Mexico, and Brazil.
Ripple is also expanding its influence in Brazil and other parts of Latin America. Travelex Bank in Brazil, the first FX-focused bank licensed to use ODL in the region, utilizes XRP to eliminate the need for pre-funded liquidity. In Mexico, Ripple collaborates with local non-bank financial entities to enable real-time payouts using XRP.
Even in the Middle East, where regulatory compliance is stringent, institutions like LuLu Exchange, Zand Bank, and Mamo have implemented Ripple’s payment infrastructure for regulated settlements, primarily targeting APAC and global remittance channels.
