Morgan Stanley Considers Ripple (XRP) To Be a Top Alternative to SWIFT

Morgan Stanley has taken a major step toward expanding its crypto services by applying for a National Trust Bank Charter. This charter would allow the bank to custody Bitcoin and other digital assets under federal oversight.

The move positions Morgan Stanley to integrate digital assets more directly into its banking operations, signaling growing institutional acceptance of cryptocurrencies like XRP.

Morgan Stanley’s XRP Research

Crypto researcher SMQKE (@SMQKEDQG) highlighted the significance of this development, pointing to Morgan Stanley’s existing research on Ripple and XRP. In his post on X, SMQKE emphasized two key points from Morgan Stanley’s analysis.

First, the bank recognizes XRP as “a leading international payment alternative to SWIFT.” Second, Morgan Stanley documents note that XRP’s system is “more efficient than Bitcoin and is closer to what traditional banks do today.” These statements show a deep institutional understanding of XRP’s operational design and potential role in banking infrastructure.

XRP’s Efficiency Compared to Other Cryptocurrencies

Morgan Stanley’s research has long detailed XRP’s efficiency compared to traditional cryptocurrencies. While energy intensity data is limited, the bank observed that XRP’s consensus protocol is much faster than Bitcoin’s proof-of-work system, taking 3-5 seconds per transaction compared to 10 minutes for Bitcoin.

The analysis also notes that Ripple’s system is a centralized intermediary to check transactions, making it closer to traditional banking processes. This structure allows for rapid settlements while maintaining security, a combination that traditional institutions find appealing.

Ripple’s Impact on Payment Processing

The bank also emphasized Ripple’s broader impact on payment processing. According to prior research, adopting a Ripple-like payment system could “shorten settlement periods, speed up transactions and reduce the risk of fraud.”

Morgan Stanley considers Ripple to be a strong alternative to SWIFT, capable of streamlining international transfers and reducing operational inefficiencies. The findings indicate that Ripple’s ledger technology can enhance both speed and reliability in cross-border payments.

Custody Potential and Institutional Integration

The potential for Morgan Stanley to custody XRP and other digital assets is significant. It suggests that the bank could integrate XRP more directly into its internal operations, offering clients faster and more efficient transaction options.

The charter would allow Morgan Stanley to leverage its institutional trust while providing secure access to crypto liquidity. This step mirrors Ripple’s approach with its own banking charter, creating parallel paths for regulated adoption of digital assets within established financial frameworks.

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