A previously overlooked 2019 transcript of Ripple CEO Brad Garlinghouse’s appearance at the Economic Club of New York has come back into focus, resurfaced by cryptocurrency researcher SMQKE. The document details Garlinghouse’s comparison of XRP’s transaction speed and volatility risks versus traditional SWIFT payments at a time when SWIFT is updating its own infrastructure.
SWIFT pilots new blockchain ledger
SWIFT, a global financial messaging service used by over 11,500 financial institutions, recently announced the launch of a blockchain-based shared ledger. Seventeen international banks are preparing to test tokenized cross-border payments on this new system.
The new ledger has been positioned as a natural extension of SWIFT’s current network. It will allow for 24/7 payments processing, permitting member banks to settle outside of traditional business hours and finalize payments through established clearing systems after initial transaction completion.
This move comes amid a broader industry push to increase payment speeds and reduce exposure to currency volatility during the settlement process.
Mini dictionary: SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is the leading provider of secure financial messaging services and infrastructure enabling cross-border payments among banks worldwide.
Ripple CEO outlines XRP’s risk advantage
In his 2019 remarks, Garlinghouse addressed concerns from bankers regarding the volatility of cryptocurrencies. He used a direct comparison: a typical SWIFT transaction takes three days—about 270,000 seconds—while an average XRP transfer settles in just three to four seconds.
Garlinghouse argued that although digital assets like XRP may experience higher daily volatility, the limited exposure window dramatically reduces aggregate risk.
“When you do a SWIFT transaction, the average transaction, let’s just say, is three days. That’s 270,000 seconds. If you multiply 270,000 seconds in a low volatility asset and compare it to three seconds in a high volatility asset, you find that the total volatility risk in XRP is actually lower,” explained Garlinghouse.
This perspective directly challenges a common objection from traditional banks that see cryptocurrency volatility as an insurmountable issue in payment settlements.
The role of hedging and settlement windows
In conventional cross-border payments, the weeks-long settlement period exposes parties to exchange rate fluctuations. Banks typically hedge this risk, buying and selling currencies upfront or via derivatives in case of sharp market movements.
Garlinghouse maintained that with XRP’s rapid settlement, this hedging becomes unnecessary. “With XRP, it’s happening so fast you don’t really need to hedge because you’re in and out of it in a few seconds,” he told the audience during his 2019 appearance.
This argument is gaining renewed relevance, as SWIFT’s new blockchain-based ledger also seeks to reduce settlement intervals and align the service with competitors focusing on rapid transactions.
Industry context and ongoing debate
SMQKE’s resurfacing of Garlinghouse’s arguments comes as the debate around speed, cost, and risk in international payments intensifies. While SWIFT’s blockchain initiative marks significant progress for traditional finance, proponents of XRP emphasize that Ripple’s network was built from inception to enable near-instant settlements.
The fundamental distinction remains the exposure duration: seconds in networks like XRP compared with hours or days over traditional payments rails. This, Garlinghouse claims, offers an inherent advantage for managing volatility risk in cross-border transfers.
Even as new blockchain-based financial infrastructure emerges, the case for XRP’s rapid settlement and lower volatility risk continues to echo in industry conversations.
Ripple, founded in 2012 and headquartered in San Francisco, is a technology company that offers blockchain-based payment solutions using the XRP Ledger. Brad Garlinghouse has served as its CEO since 2016.
| Network | Average Settlement Time | Volatility Exposure Window | Hedging Needed |
|---|---|---|---|
| Traditional SWIFT | Three days (270,000 sec) | High | Yes |
| XRP Ledger | 3–4 seconds | Low | No |
| SWIFT Blockchain Ledger (Pilot) | Near real-time (undisclosed sec) | Lower than traditional | Reduced |
