SWIFT vs XRP Explained: Ripple CEO Breaks Down the Market Impact

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Ripple CEO Brad Garlinghouse addressed concerns from the XRP community after SWIFT’s recent announcement about entering blockchain technology. The update came in an exclusive shareholder letter shared by Jake Claver.

SWIFT revealed plans to use a Layer 2 blockchain built on Ethereum called Linea, with an initial focus on smart contracts and a potential stablecoin. While SWIFT has not confirmed that their stablecoin will run on Ethereum, some in the community assumed this would be the case.

Garlinghouse Calls SWIFT Move a Marketing Play

Garlinghouse reassured XRP holders that Ripple’s journey with the XRP Ledger is far from over. He described SWIFT’s announcement as more of a marketing play ahead of their annual conference rather than a fully developed product.

He said that while Ripple once considered SWIFT a major competitor, the company has spent years building robust digital asset infrastructure, expanding payments, custody solutions, stablecoins, and more on the XRP Ledger.

“In the time it has taken SWIFT to announce a prototype, we’ve been building real products and expanding our infrastructure globally,” Garlinghouse said.

Network Effect Gives XRP an Edge

A major concern among XRP investors is whether SWIFT or other companies could copy XRP’s code to create their own blockchain solutions. Garlinghouse explained that simply copying the XRP Ledger does not replicate Ripple’s network effect.

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For over 13 years, Ripple has onboarded central banks, financial institutions, and other users onto the XRP Ledger. This adoption creates a network that competitors cannot easily replicate.

He added that major financial players like JP Morgan have also chosen Ethereum for smart contracts and blockchain products, not because XRP’s code is inferior, but because widespread adoption and infrastructure matter more than the technology itself.

The CEO’s message to shareholders was clear: Ripple is confident in the XRP Ledger’s future and believes competitors cannot match the ecosystem Ripple has built.

XRP Community Reaction

The update reassured many in the XRP community who were concerned that SWIFT’s blockchain plans might threaten Ripple’s position. Analysts and investors noted that experience, adoption, and trust with central banks give XRP a long-term advantage over newly announced blockchain projects.