Morgan Stanley Considers Ripple a Leading International Payment Alternative to SWIFT
May 8, 2025
An XRP community researcher recently drew attention to dated statements from investment banking giant Morgan Stanley, which praised Ripple as a suitable alternative to SWIFT. This assessment was highlighted by @SMQKEDQG and was published in an academic review from Boston University’s Review of Banking & Financial Law (Vol. 36). Notably, Morgan Stanley’s original recognition came in its publication titled “Blockchain in Banking: Disruptive Threat or Tool?”
A Faster, Safer, and Cheaper Path Forward
According to the journal, Morgan Stanley noted that adopting a “Ripple-like payment system” could reduce settlement times, accelerate transactions, and lower fraud risks. These enhancements target long-standing inefficiencies in cross-border banking, where delays, intermediaries, and costly foreign exchange conversions often slow down transactions.
Ripple’s distributed ledger technology (DLT) enables real-time transaction processing without the need for correspondent banking accounts. This solution dramatically lowers operational costs for banks and increases the funds available for customer remittances.
The article positions Ripple among the most serious contenders to overhaul outdated banking infrastructure, especially when cited alongside broader use cases for blockchain in the financial sector. From smart contracts to compliance improvements, the legal review points out DLT, and Ripple in particular, as a vehicle for the much-needed transformation.
In addition to Ripple, the piece also explores how Ethereum’s smart contracts and blockchain-based audit trails could enhance regulatory oversight and transparency.
Morgan Stanley’s Recognition of Ripple
Ripple’s Growing Legitimacy Among Institutions
The Morgan Stanley citation shows the growing institutional recognition of Ripple’s model as a viable replacement for legacy systems. Notably, this recognition is not new. Previously, JPMorgan highlighted XRP and Ripple as key players in unlocking $120 billion trapped in inefficient cross-border payments.
It noted that multinational corporations transfer $23.5 trillion annually, about 25% of global GDP. However, these funds face significant inefficiencies in speed, cost, and transparency. These issues generate $120 billion in annual transaction costs due to foreign exchange conversions, trapped liquidity, and delayed settlements.
While entities like Ripple, SWIFT, and CLS Group are working on solutions, JPMorgan pointed out that SWIFT still relies on outdated correspondent banking systems, and CLS Group only supports 18 currencies. Meanwhile, it recognized Ripple’s real-time payment infrastructure, which uses XRP for settlement, for its potential but criticized it for cryptocurrency volatility.
Notably, Ripple itself has publicly disclosed that it is developing a system that could serve as an alternative to SWIFT. However, whether Ripple will ultimately replace SWIFT remains to be seen.
Despite the uncertainty, when firms like Morgan Stanley publicly acknowledge Ripple’s potential, it adds weight to the aspirations of XRP enthusiasts.
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