Despite Ripple’s long-standing claims of partnerships with hundreds of financial institutions, critics have often pointed to a lack of visible activity on the XRP Ledger.
This week, Ripple CTO David Schwartz addressed those concerns head-on, responding to a viral thread from investor and YouTuber Andrei Jikh questioning XRP’s real-world usage.
Schwartz attributed the subdued on-chain volume to regulatory limitations, particularly the risks of dealing with unknown or unsanctioned counterparties through decentralized exchanges. “Even Ripple can’t use the XRPL DEX for payments yet,” he noted, explaining that upcoming features like permissioned domains aim to solve this by enabling compliant institutions to transact with vetted participants on-chain—without sacrificing the openness of the ledger.
He also addressed a recurring comparison: why use XRP over stablecoins? Schwartz argued that XRP’s volatility isn’t always a drawback, especially for bridge currency use cases where liquidity and flexibility are key. Unlike fiat-pegged stablecoins, XRP can act as a neutral connector between multiple assets, especially in a fragmented multi-stablecoin environment.
As for big players like BlackRock choosing XRPL over proprietary chains, Schwartz emphasized the advantage of building on open, liquid networks. “Why doesn’t Circle launch USDC on its own chain?” he asked rhetorically, underscoring that liquidity thrives on accessibility, not isolation.
Schwartz also clarified that while Ripple’s enterprise operations are constrained by regional licensing, the XRP Ledger itself remains neutral and open globally. He reiterated that XRP remains deeply integrated into Ripple’s payment infrastructure—even if much of that utility isn’t visible on-chain.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/ripple-cto-breaks-down-xrp-ledgers-institutional-adoption-challenges/