Institutional Solutions, Not Retail Adoption, Says Investor

• Ripple’s focus is on enterprise solutions for financial institutions, not retail adoption.
• Ripple aims to improve global financial infrastructure through institutional-grade payment solutions and cross-border settlements.

Ripple’s approach to blockchain technology has sparked criticism, particularly because it focuses on institutional-grade solutions rather than public adoption.

Renowned investor Jake Claver addressed this problem in a recent tweet, claiming that Ripple’s business model is unique in that it focuses on large-scale payment solutions for businesses and governments. Claver claims that Ripple, unlike many other blockchain technologies, is not reliant on individual retail adoption.

Instead, the company focuses on building infrastructure that serves financial institutions, central banks, and enterprises.

I get asked a lot about Ripple’s use case and support for retail compared to other blockchain ecosystems. The thing people need to realize is Ripple’s business model targets large-scale payment solutions for enterprises and governments. 🧵 1/4

— Jake Claver, QFOP (@beyond_broke) September 11, 2024

Ripple Focus on Institutional Collaboration and Infrastructure Enhancement 

That distinction is critical to understanding Ripple’s value proposition. While regular investors can buy and sell XRP, Ripple’s primary goal is to support institutional-grade transactions and cross-border payments with unprecedented speed and efficiency.

As Claver underlined, Ripple’s purpose is to enable financial infrastructure at the enterprise and government levels rather than developing solutions exclusively for retail customers. This strategy differentiates Ripple from many other blockchain ecosystems that rely primarily on retail engagement.

One of Ripple’s primary assets is its ability to connect its technology into current financial institutions, allowing for faster and more efficient cross-border transactions. This has made Ripple a popular choice for banks and major organizations looking to streamline their payment operations.

Unlike many other blockchain networks that want to disrupt existing financial systems by delivering decentralized solutions for ordinary consumers, Ripple intends to collaborate with financial institutions to improve the infrastructure they already employ.

As a result, Ripple has formed multiple relationships with financial institutions and central banks, establishing itself as a market leader in the institutional blockchain sector.

In accordance with this institutional focus, Ripple has entered into strategic collaborations that have strengthened its position as a pioneer in blockchain innovation.

For example, as we previously reported, Ripple has renewed its $1 million agreement with NYU Abu Dhabi, which aims to advance blockchain research and innovation in the UAE.

This relationship is part of Ripple’s larger University Blockchain Research Initiative (UBRI), which aims to push the boundaries of blockchain technology and digital banking on a worldwide scale.

Ripple’s UBRI project has helped shape the future of blockchain by financing research and development initiatives at several universities across the world. These agreements demonstrate Ripple’s long-term goal of collaborating with universities, governments, and businesses to develop solutions that transcend beyond retail use cases.