 
 
Ripple CEO Brad Garlinghouse has identified the defining factor for institutional adoption of the XRP Ledger (XRPL).
In a recent exchange with an XRP validator known as Vet_X0, Garlinghouse was asked what would make institutions comfortable using XRPL for transactions.
His one-word reply, ’privacy’ summed up the growing shift in Ripple’s strategy toward institutional integration.
The statement underscores a new focus for Ripple
Over the past year, the company and XRPL developers have introduced a series of compliance-oriented upgrades. They aim to align the network with the security and regulatory standards expected by banks and corporations.
However, Garlinghouse’s comment highlights what Ripple believes remains the missing piece: a privacy layer robust enough to protect sensitive institutional data without compromising regulatory compliance.
 
With most recent updates already completed, only the privacy features and lending and borrowing functions remain to be added.
XRP Institutional Adoption
According to Vet, if Ripple manages to introduce privacy on the XRP Ledger using ZK-Rollups, it would make it possible to verify institutional transactions directly on-chain while handling computations off-chain.
This setup could also allow institutions to receive secure on-chain credentials that support KYC and AML requirements. Additionally, they would be able to utilize decentralized exchanges and borrow against real-world collateral on-chain.
Finally, Vet highlights that the upcoming XLS-101 smart contracts may serve as the crucial link for these developments. He describes them as essential for network security and as the “glue” that connects all existing system tools.
Garlinghouse’s latest remarks confirm that privacy has become the central focus of Ripple’s institutional strategy for 2025 and 2026.
He described the goal as enabling confidentiality without secrecy. This ensures that transactions remain auditable for regulators while protecting competitive information from public view.
Implications for XRP Ledger and Institutional Finance
If successful, Ripple’s privacy enhancements could significantly expand the use of XRPL among institutional clients. Financial firms could transact, lend, or issue tokenized assets without revealing sensitive commercial information, while still proving compliance through cryptographic verification.
Private multipurpose tokens could enable banks to collateralize assets, manage liquidity, and participate in decentralized finance markets without exposing positions publicly.
The broader outcome could reposition XRPL as a preferred public ledger for tokenized assets and institutional transactions. This has offered a middle ground between the transparency of public blockchains and the control of permissioned systems.
As Garlinghouse put it, privacy is not just an enhancement for XRPL but the final requirement for unlocking large-scale institutional adoption.