Community Questions Ripple's Institutional Adoption Claims

Ripple's claims of serving over 300 financial institutions face renewed scrutiny as entrepreneur Andrei Jikh highlights discrepancies between public blockchain data and company statements. The debate emerged through a series of X posts this Wednesday, with Ripple CTO David Schwartz providing detailed responses about the company's operational approach.

Schwartz Reveals Institutional Preference for Offchain Solutions

The technology chief acknowledged that most bank transactions occur outside the XRP Ledger (XRPL), citing regulatory concerns as the primary driver. "Even Ripple avoids decentralized transactions for payments due to terrorism financing risks," Schwartz stated, noting the inability to vet liquidity providers on public blockchains. This admission comes despite XRPL's positioning as an enterprise-grade blockchain solution.

——The financial industry's comfort with private systems creates natural inertia against public chain adoption—— Schwartz explained, while predicting gradual change as institutions recognize onchain benefits.

XRPL Metrics Show Declining Activity

Blockchain analytics reveal concerning trends for the XRP ecosystem: • 【30-40%】 drop in Q1 2025 transaction volume • Only 【$81.8 million】 TVL across DeFi applications • Discontinued quarterly transparency reports after May 2025

Schwartz attributed these figures to institutional activity occurring through private channels, though concrete verification mechanisms remain unavailable. The situation contrasts with Ripple's high-profile partnerships, including recent tokenization projects with Dubai authorities and Guggenheim Partners.

Security Concerns Shape Technical Roadmap

The CTO mentioned developing "permissioned domains" as potential compliance solutions, without specifying implementation timelines. This approach would theoretically allow regulated entities to maintain control while leveraging XRPL's infrastructure.

Industry observers note the tension between decentralization principles and enterprise requirements. "Ripple's challenge mirrors broader adoption hurdles," commented a blockchain analyst who requested anonymity. "Institutions want blockchain efficiency without its transparency trade-offs."

Future Reporting Changes Raise Questions

Ripple's decision to sunset its quarterly markets report has amplified transparency concerns. The company maintains it will share updates through alternative channels, but stakeholders await concrete details about new reporting frameworks.

As of press time, XRP trades at 【$0.52】, showing minimal reaction to the developments. The cryptocurrency remains 85% below its January 2018 all-time high of $3.40.