 
 
Ripple’s chief technology officer, David Schwartz, recently addressed long-standing concerns about real-world use cases for XRP and its banking collaborations.
Despite more than 300 reported partnerships, the XRP Ledger has seen limited on‑chain activity. Schwartz offered technical, regulatory, and strategic insight in recent public statements.
Ripple has built over 300 bank partnerships since its founding in 2012, according to company disclosures. Yet, daily on‑chain transaction volume on the XRP Ledger (XRPL) remains modest.
The discrepancy prompted investor scrutiny—especially from long‑time followers like YouTuber Andrei Jikh, who asked: “After 13 years, shouldn’t there be billions in daily on‑chain volume?”
Why Ripple’s Banks Still Settle Off‑Chain
Schwartz responded that many institutions have historically preferred off‑chain settlements for compliance reasons, not system capacity.
 
He acknowledged that even Ripple cannot yet use the XRPL DEX for payments because there’s no guarantee the liquidity provider isn’t a sanctioned actor.
That risk, he said, prevents full decentralization for enterprise payments. Schwartz emphasized that permissioned domains—a gated environment allowing only vetted counterparties—are in development to resolve this concern and bring use cases on‑chain.
In his words: “If volatility is not an issue because it’s a bridge currency, what is the incentive to hold it?”. He explained that a bridge currency like XRP only works when users hold it for availability, especially in multi-currency scenarios where timing matters.
XRP Ledger and Tokenization
Ripple CTO also addressed why firms like BlackRock might opt for XRPL over building proprietary chains. His answer: agreement on interoperability and asset portability matters more than the choice of chain.
He noted that Circle’s USDC is deployed across multiple networks for flexibility—and Big Tech firms may adopt a similar approach. Schwartz predicted a future where no single chain dominates, but standards across chains drive adoption.
These moves signal institutional use beyond messaging and payments. That said, total value locked (TVL) in XRPL-based decentralized finance remains low on $80.6 million as of mid‑2025, per DefiLlama—well below activity levels on Ethereum and Solana.Source : DefiLlama
Ripple reported a 30%–40% drop in XRPL activity in Q1 2025—wallet creation and transaction volumes declined, mirroring broader crypto seasonality.
While investors note the slowdown, Schwartz believes the trend is reversing, institutions are close to shifting activity on‑chain
Schwartz warned that in a future dominated by stablecoins, bridge currencies like XRP may retain value. He argued no single stablecoin can achieve global dominance due to jurisdiction and legal boundaries.
A multi‑stablecoin world still benefits from a neutral intermediary like XRP to facilitate settlement across varied tokens.
Ripple’s US origin raises geopolitical concerns. Schwartz clarified that XRPL is not U.S.-controlled, stating the network never discriminates by participant.
He added that Ripple operates through licensed subsidiaries in multiple jurisdictions. While he acknowledged that some regions may resist a U.S.-affiliated network—such as payments involving Pakistan or Saudi Arabia—Ripple focuses on building trust and adoption where it is welcomed.
Source: https://zycrypto.com/ripple-cto-explains-why-bank-partnerships-havent-generated-billions-in-on-chain-volume-for-xrp/