Morgan Stanley calls Ripple “key player” for replacing the interbank system Swift
- Morgan Stanley sees Ripple’s technology the modern alternative to the aging old systems from Swift.
- The DLT of Ripple reduces fraud and delays and is equally well received by banks and right -wing experts.
Large financial institutions are increasingly signaling their support for blockchain-based solutions to overhaul the global payment systems. Morgan Stanley has again spoken with a remarkable recommendation in which Ripple is referred to as a convincing alternative to Swift.
This recognition underlines the growing interest in the distributed Ledger technology (DLT) as a solution for the long existing inefficiencies in cross-border transactions. In view of the increasing pressure on the financial markets, Ripple’s model is very important for both industry leaders and in academic circles.
Morgan Stanley emphasizes Ripple’s disruptive potential
Morgan Stanley’s analysis, originally in her report Blockchain in Banking: Disruptive Threat or Tool? Published in Volume 36 of the Boston University Review of Banking & Financial Law.
According to the bank’s findings, the introduction of a “ripple-like payment system” could shorten the settlement times, accelerate transactions and reduce fraud risks-important pain points in today’s global payment infrastructure.
In the report, in particular, it is emphasized that the Ripple DLT model makes correspondence banking superfluous, a procedure on which Swift is still relating to. This traditional method often leads to delays when processing 3-5 days.
In contrast, the infrastructure of Ripple offers almost immediate handling while at the same time drastic reduction in operating costs. Morgan Stanley found that Ripple’s approach has the potential to change the way in which banks handle international payments, since it enables real -time processing without intermediate institutions.
Industry -wide recognition for Ripple is growing
The growing institutional recognition of Ripple’s payment model is not limited to Morgan Stanley. JPMorgan has already identified Ripple and XRP as important players in solving inefficiencies in cross -border payments.
According to her analysis, $ 120 billion is lost in the current system due to delays, currency reductions and liquidity traps. At $ 23.5 trillion, which are moved every year by outdated networks, such inefficiencies are no longer portable.
In the JPMorgan report, Ripple, Swift and the CLS Group were compared. It was emphasized that Swift is still heavily dependent on an outdated infrastructure and that the CLS Group only supports 18 currencies worldwide.
In the meantime, the real-time system of Ripple, which is based on the XRP Ledger, was recognized for its efficiency despite the concerns about the volatility of cryptocurrencies. With the earlier conclusion of Morgan Stanley, these observations coincide that Ripple is one of the most serious candidates for modernizing international banking.
In the legal examination of the Boston University, Ripple was cited as part of a wider blockchain revolution in addition to the Smart Contract capabilities of Ethereum. The paper underlines the potential of DLT to improve compliance with regulations, transparency and regulatory supervision in the entire financial sector. Such academic recognition further strengthens Ripple’s position as a credible alternative to conventional systems.
While Ripple continues to develop his own Swift alternative, institutional support from leading banks such as Morgan Stanley and JPMorgan gives additional weight to its vision. These developments indicate that the perspective of the traditional financial actors changes to blockchain – not as a threat, but as an instrument for eliminating the inefficiency of the global banking system. With the increasing distribution of blockchain, the dynamics behind the cross -border payment solutions from Ripple increase in both companies and science.
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