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Key Takeaways:
- XRP’s neutrality and liquidity make it more effective than stablecoins for cross-border settlements.
- Institutions may turn to XRPL for scalable, chain-agnostic tokenization.
- Regulatory features in development could unlock broader on-chain adoption of XRP.
Ripple’s Chief Technology Officer, David Schwartz, has made a strong case for XRP’s role as a neutral, liquid bridge asset in an increasingly fragmented financial ecosystem. Responding to questions about XRP’s real-world utility and slow on-chain volume growth, Schwartz argued that XRP remains central to Ripple’s payment strategy, especially as stablecoins proliferate without a clear global leader.
XRP’s Edge Over Stablecoins: Liquidity, Neutrality, and Speed
Schwartz acknowledged that stablecoins like RLUSD and USDT have seen rising adoption. However, he emphasized that XRP’s lack of national affiliation and ability to facilitate near-instant transactions without long holding times gives it a unique advantage. “Volatility matters less when you only hold an asset for seconds,” he noted, dismissing a key concern critics often raise.
"Ripple has 300+ bank partnerships, but after 13 years, shouldn't there be billions in daily on-chain volume?"
— David 'JoelKatz' Schwartz (@JoelKatz) July 30, 2025
I think there are a number of reasons why institutions have historically preferred to use digital assets off chain rather than on chain. I think we're close to changing…
He further pointed out that liquidity providers and institutions benefit from holding XRP due to its utility and deep liquidity. Unlike stablecoins tied to specific jurisdictions or regulatory frameworks, XRP’s neutrality makes it particularly useful in a multi-currency world without a dominant stablecoin.
Institutional Adoption Hinges on Trust and Interoperability
Schwartz addressed why XRP hasn’t yet dominated on-chain trading: institutions are still wary of regulatory uncertainty and misuse on decentralized exchanges. However, he suggested that permission features and improved compliance tools will help unlock broader institutional usage.
Also Read: Whales Are Buying XRP Again — Is $4 the Next Stop?
He also hinted that major players like BlackRock could adopt the XRP Ledger (XRPL) due to its scalability and interoperability—qualities essential for tokenizing real-world assets across borders. XRPL’s chain-agnostic design, comparable to how USDC operates on multiple blockchains, positions it well for future adoption.
XRP Positioned for Cross-Border Relevance
Despite the rise of stablecoins, Schwartz believes XRP’s neutrality, utility, and liquidity will drive adoption as global payments evolve. Its ability to bridge assets without national bias makes it a critical infrastructure component in a decentralized financial future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
