Morgan Stanley Once Endorsed Ripple as a Viable Alternative to SWIFT, Notes XRP Researcher

Morgan Stanley Once Endorsed Ripple as a Viable Alternative to SWIFT, Notes XRP Researcher

A resurfaced academic review is reigniting conversations around Ripple’s potential to disrupt traditional cross-border banking systems. Highlighted by XRP community researcher @SMQKEDQG, the endorsement came from an earlier Morgan Stanley report that described Ripple as a compelling alternative to SWIFT—the long-standing global interbank messaging network.

The reference appears in Volume 36 of the Boston University Review of Banking & Financial Law, where the investment banking titan’s paper, titled “Blockchain in Banking: Disruptive Threat or Tool?”, laid out the advantages of adopting blockchain-based solutions like Ripple.

A Faster, Cheaper, and More Secure Future for Cross-Border Transactions

Morgan Stanley noted that Ripple’s distributed ledger technology (DLT) could dramatically reduce settlement times, improve transaction speeds, and lower fraud risks. These improvements directly address major inefficiencies in the traditional cross-border payment model, where time delays, intermediary banks, and foreign exchange fees add friction and cost.

Unlike legacy systems that rely on correspondent banking relationships, Ripple’s DLT framework allows for near-instant settlement, slashing operational expenses and unlocking more funds for end-users—especially in global remittances.

The academic review positioned Ripple as one of the most promising blockchain innovations in financial services, comparing its potential to Ethereum’s smart contracts and transparent audit trails, which could support enhanced regulatory compliance.

Institutional Recognition of Ripple’s Potential

Morgan Stanley isn’t alone in acknowledging Ripple’s disruptive potential. JPMorgan, in previous commentary, also recognized Ripple and its native digital asset XRP as important players in transforming the $23.5 trillion annual cross-border payments market—an area plagued by nearly $120 billion in inefficiencies tied to liquidity traps, delayed settlements, and FX conversions.

While Ripple, SWIFT, and CLS Group are all working to modernize cross-border financial infrastructure, SWIFT continues to operate on aging correspondent banking systems, and CLS Group’s reach remains limited to just 18 currencies. In contrast, Ripple offers a real-time settlement solution using XRP, albeit with ongoing concerns about crypto market volatility.

Ripple has publicly stated its intention to build systems that could serve as alternatives to SWIFT, but whether it will ultimately replace the global incumbent remains uncertain. Nonetheless, public recognition from major financial players like Morgan Stanley adds credibility to Ripple’s position as a legitimate challenger in the space.