Ripple CTO Explains Why Billions Not Moving On XRP Ledger Yet Despite Partnerships with 300+ Banks
Main Idea
Ripple CTO David Schwartz explains the reasons behind the limited on-chain activity on the XRP Ledger (XRPL), citing institutional hesitation, regulatory compliance challenges, and the need for tools to facilitate institutional adoption.
Key Points
1. Institutional hesitation and regulatory compliance issues are major barriers to large-scale on-chain activity on the XRP Ledger (XRPL), despite Ripple's 300+ bank partnerships.
2. Ripple is developing tools like permissioned solutions with verified, compliant entities to encourage institutional on-chain activity.
3. Schwartz argues that XRP's price volatility is not a disadvantage for enterprise payments and that bridge currencies like XRP remain useful in a multi-currency world with stablecoins.
4. Institutions may prefer XRPL over private blockchains due to its open, liquid, and well-supported ecosystem, similar to why USDC is not limited to a proprietary blockchain.
5. Geopolitical trust and jurisdictional concerns, including U.S. oversight, also play a role in the adoption of XRPL, though the ledger itself is not U.S.-based.
Description
Despite Ripple’s extensive global partnerships of over 300 banks and financial institutions, the XRP Ledger (XRPL) still sees relatively modest on-chain activity. This has raised questions within the crypto community: Why hasn’t Ripple’s widespread adoption translated into billions of dollars in daily on-chain volume? Ripple’s Chief Technology Officer, David Schwartz, recently addressed these concerns in a candid and detailed post on X. His responses offer key insights into the technical, regula...
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