XRP is gaining traction as a potential alternative to SWIFT, with Teucrium CEO Sal Gilbertie suggesting the token and its parent company Ripple are on the verge of transforming international finance.

SWIFT’s Future Under Pressure

Speaking on the Paul Barron Show, Sal Gilbertie expressed concerns over the sustainability of SWIFT, the decades-old infrastructure that banks use for cross-border payment messaging. The asset manager argued that the system’s reliance on pre-funded bank accounts is economically inefficient and ripe for disruption by blockchain-based networks like Ripple.

Gilbertie pointed to Ripple’s growing influence, particularly its large XRP reserves and pending application for a banking license, as signs the company could soon be among the top global banks by capitalization. He speculated that Ripple’s 40 billion XRP holdings could become a major financial asset once it officially enters the banking arena.

“What’s Ripple going to do with its 40 billion XRP given that they filed to be a bank?” questioned Gilbertie. “One theory is they’ll use it as capital, get their license, and become a top-20 capitalized bank.”

Blockchain’s Game-Changing Potential

Gilbertie emphasized that the real revolution lies in how blockchain eliminates the need for banks to fund both sides of a transaction. This outdated requirement has tied up massive capital across the global banking system.

“That all goes away,” Gilbertie said. “The blockchain will free up tons of frozen capital from bank balance sheets… yet few are really discussing this shift.” As standards like ISO 20022 are implemented, he predicts we’ll see more banks revealing the growing role of blockchain in facilitating money transfers — while SWIFT’s market share gradually erodes.

“As SWIFT fades and Ripple activates its full suite of partnerships — those under NDAs today — we’ll see banks start to publicize the volume of money moved via the blockchain versus SWIFT. That turning point will be massive,” he noted.

Gilbertie also touched on Ripple’s growing market legitimacy. In April, his firm launched the first leveraged XRP ETF in the U.S., marking a milestone for institutional exposure. He believes regulatory approval for spot XRP ETFs could come before year-end, further cementing its status within the financial ecosystem.

Market Volatility Hits XRP

Despite Gilbertie’s optimism, XRP has experienced notable price volatility. As of August 18, XRP slipped to an 11-day low just below the $3.00 mark, declining 4.6% over 24 hours and 9.1% on a weekly basis, based on CoinGecko data.

Technical analysts remain split on its near-term movement. Trader Ali Martinez warned that failure to regain the $3.30 resistance level could expose XRP to losses down to $2.60. At the same time, he said holding support above $2.81 was key to sustaining the token’s bullish trend.

XRP currently trades roughly 18% below its July peak of $3.65 but still boasts gains of more than 425% compared to a year ago — a testament to its long-term upward momentum amid short-term turbulence.

Related: XRP Price: $12M Max Pain for Bears

Modern blockchain technology is paving the way for a decentralized financial system beyond SWIFT.