Brad Garlinghouse, CEO ofĀ Ripple, stirred controversy once again, arguing thatĀ XRP exposes institutions to lower transaction risk than traditional SWIFT transfers, despite its higher volatility. The discussion erupted after crypto researcherĀ SMQKEĀ shared a document on X in which Garlinghouse develops this argument with concrete data.
According to Garlinghouse, an average SWIFT transfer takes approximatelyĀ three daysĀ to settle ā aroundĀ 270,000 secondsĀ of exposure toĀ currency fluctuations, liquidity costs, counterparty risk, and settlement uncertainty, forcing institutions to rely onĀ costly hedging strategies.
ā¼ļøBRAD GARLINGHOUSE: XRP CARRIES LESS RISK THAN A TRADITIONAL SWIFT TRANSACTIONā¼ļø
āWhen you do a SWIFT transaction, the average transaction, let's just say is three days. That's 270,000 seconds, trust me I did the math on that. If you multiply 270,000 seconds in a low volatilityā¦ https://t.co/z3uDvpSpR7 pic.twitter.com/kuUzWPk32B
— SMQKE (@SMQKEDQG) July 23, 2026
By contrast, transactions on theĀ XRP LedgerĀ settle inĀ three to five seconds. “If you compare 270,000 seconds in a low-volatility asset with three or four seconds in a highly volatile asset like XRP, it turns out thatĀ you take on lessĀ volatility risk with an XRP transaction than with fiat,” Garlinghouse stated. Since XRP is held for only a few moments before being converted to the destination currency, institutionsĀ canĀ largely forgo currency hedging.
Recently, SWIFT explained that its blockchain strategy aims toĀ modernize its network, not replace it. The organization, which connects more thanĀ 11,500 financial institutions, is integrating blockchain technology into its infrastructure to combineĀ tokenized settlementĀ with the scale and interoperability of the current banking system.
Source:Ā https://x.com/SMQKEDQG/status/2080229595693912573
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