XRP Debate Revives as SWIFT Choses Tokenized Deposits Over Ripple

Kamilah Stevenson, a prominent wealth coach, argues that SWIFT's decision to build a blockchain-based settlement system using tokenized bank deposits does not eliminate the need for XRP's cross-border liquidity role.

The debate over XRP's investment case has been reignited by SWIFT's move. The banking messaging giant announced in July that 17 major banks across six continents would pilot its new system, including Citi, HSBC, Wells Fargo, UBS, and Standard Chartered.

SWIFT's platform uses a version of Ethereum and tokenized bank deposits within a closed, bank-controlled environment. This does not involve XRP, according to Stevenson, who notes that the development has been widely presented as a challenge to XRP's investment case.

XRP could reduce the need for separate liquidity pools for every currency pair by acting as a neutral bridge asset. However, it is unclear whether banks will choose XRP for this role, and SWIFT's decision to pursue tokenized deposits suggests that financial institutions may prefer controlled, institution-led systems.