Ripple CTO Explains Why Billions Not Moving On XRP Ledger Yet Despite Partnerships with 300+ Banks

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.