How Banks Can Use $XRP for SWIFT Payments Without Collaboration

The SWIFT network and Ripple's blockchain system are often positioned as distinct, even competitive ecosystems for handling cross-border payments. The idea that they operate in coordination usually assumes a formal partnership that does not exist. However, a technical analysis and diagram presented by cryptocurrency researcher SMQKE (@SMQKEDQG) on X shows a technology-based approach to ensure interoperability. This connection is activated within the existing software infrastructure of financial institutions, creating an unofficial yet highly functional bridge between SWIFT's messaging standards and Ripple's modern payment capabilities.

Payment Stream From SWIFT To Ripple When a bank conducts cross-border transactions using SWIFT's Global Payments Innovation (GPI) service, that bank will send a standardized payment notification in the MT103 format to the receiving institution. SWIFT GPI was introduced to improve speed and provide comprehensive tracking. Typically, this message will be stored in the correspondent banking system until payment is made. When the bank also uses Ripple, the bank's internal system can operate as a transfer point. The core banking platform and the enterprise resource planning (ERP) systems from providers like Temenos, SAP, or CGI can be configured to analyze data from MT103 and trigger a separate workflow. Ripple Integration Point At this time, the workflow is transitioning from traditional rails to digital payments. Instead of having to go through correspondent banks, the bank's software can securely make HTTPS API calls to Ripple. This operation converts SWIFT payment orders into payment requests on the Ripple platform. This step occurs independently of SWIFT. The role of the SWIFT network ends when the GPI message reaches the bank. Next is the bank's decision to use Ripple as a payment layer, allowing the bank to maintain the familiar SWIFT interface with customers while still relying on Ripple to execute transactions faster. Real-Time Payment Using XRP When the order is entered into Ripple, payments can be made in XRP through On-Demand Liquidity (ODL). This process eliminates the need for a pre-funded nostro account. The base currency is exchanged for XRP on the digital asset platform, transferred via the XRP Ledger (XRPL) within seconds, and then converted back to local currency at the destination. Money is transferred to the beneficiary almost instantly. This reduces the payment time from several days to just a few seconds, freeing up capital that would be stuck in the correspondent banking network. Many experts believe that Ripple and XRP will replace SWIFT. This system could help banks transition from old systems to embrace the future of global finance.