{"id":871642,"date":"2025-09-09T02:12:15","date_gmt":"2025-09-09T07:12:15","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/09\/ripple-faces-scrutiny-over-bank-partnership-claims-as-cto-responds-to-transparency-concerns\/"},"modified":"2025-09-09T02:12:15","modified_gmt":"2025-09-09T07:12:15","slug":"ripple-faces-scrutiny-over-bank-partnership-claims-as-cto-responds-to-transparency-concerns","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/09\/ripple-faces-scrutiny-over-bank-partnership-claims-as-cto-responds-to-transparency-concerns\/","title":{"rendered":"Ripple Faces Scrutiny Over Bank Partnership Claims as CTO Responds to Transparency Concerns"},"content":{"rendered":"<div>\n<div id=\"blockquote-block_acc7744b9ace8a00a623d7dcce8b88a6\">\n<ul>\n<li>YouTuber Andrei Jikh challenged XRP\u2019s viability, questioning why Ripple\u2019s claimed 300+ bank partnerships haven\u2019t produced significant on-chain transaction volume over 13 years.<\/li>\n<li>Jikh raised concerns about XRP\u2019s volatility making it impractical as a bridge asset, especially when stablecoins are increasingly preferred for cross-border transfers.<\/li>\n<li>Ripple CTO David Schwartz responded by defending XRP\u2019s volatility as potentially beneficial and promised regulatory features like permissioned domains to boost institutional adoption.<\/li>\n<li>Schwartz acknowledged geopolitical challenges for the US-affiliated network but emphasised Ripple\u2019s global licensing approach and focus on operating in welcoming markets.<\/li>\n<\/ul>\n<\/div>\n<p>YouTuber Andrei Jikh took to Crypto Twitter to voice his concern over<a href=\"https:\/\/cryptonews.com.au\/category\/xrp\/\"> XRP<\/a> and Ripple, specifically adoption, utility and long-term viability of the XRP Ledger (XRPL) ecosystem.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>I know people are VERY opinionated about this but I\u2019ve been following XRP since 2014 and I still have not found the answers to these questions. Genuinely looking for thoughtful responses:<\/p>\n<p>\u2013 Ripple has 300+ bank partnerships, but after 13 years, shouldn&#8217;t there be billions in\u2026<\/p>\n<\/div>\n<p>\u2014 Andrei Jikh (@andreijikh) <a href=\"https:\/\/twitter.com\/andreijikh\/status\/1950422878484386213?ref_src=twsrc%5Etfw\">July 30, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Jikh \u2013 who has over two million subscribers on the video platform \u2013 questioned why, despite Ripple\u2019s claims of 300+ bank partnerships over 13 years, there isn\u2019t significant, verifiable on-chain volume to reflect this usage.<\/p>\n<p>He also challenged the practicality of using XRP as a bridge asset, especially given its price volatility and the growing preference for <a href=\"https:\/\/cryptonews.com.au\/category\/stablecoins\/\">stablecoins<\/a> in cross-border transfers.<\/p>\n<p>He then raised doubts about XRP\u2019s long-term necessity, asking whether bridge assets will still matter when stablecoin pairs dominate and whether major institutions would prefer to use or build on proprietary or alternative blockchains.<\/p>\n<p>Lastly, he questioned the global appeal of a US-based, privately controlled network in an increasingly fragmented and politically sensitive financial landscape.<\/p>\n<p><strong>Related:<\/strong><a href=\"https:\/\/cryptonews.com.au\/news\/institutions-quietly-pile-into-xrp-and-solana-ahead-of-ripple-sec-verdict-says-bitget-130148\/\"><strong> <\/strong><strong>Institutions Quietly Pile Into XRP and Solana Ahead of Ripple SEC Verdict, Says Bitget<\/strong><\/a><\/p>\n<h2 id=\"h-joel-katz-s-comeback\">Joel Katz\u2019s Comeback<\/h2>\n<p><a href=\"https:\/\/cryptonews.com.au\/category\/ripple\/\">Ripple\u2019s<\/a> Chief Technology Officer (CTO), David Schwartz \u2013 who goes by the moniker Joel Katz on CT \u2013 answered with a detailed reply.<\/p>\n<blockquote data-conversation=\"none\">\n<div lang=\"en\" dir=\"ltr\">\n<p>&#8220;Ripple has 300+ bank partnerships, but after 13 years, shouldn&#8217;t there be billions in daily on-chain volume?&#8221;<\/p>\n<p>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&#8217;re close to changing\u2026<\/p>\n<\/div>\n<p>\u2014 David &#8216;JoelKatz&#8217; Schwartz (@JoelKatz) <a href=\"https:\/\/twitter.com\/JoelKatz\/status\/1950491402577805619?ref_src=twsrc%5Etfw\">July 30, 2025<\/a><\/p><\/blockquote>\n<p>He addressed the partnership concerns by suggesting that regulatory safeguards like permissioned domains are on the way to make institutional use of XRPL more viable and compliant, though he agreed adoption is slow. He also explained why Ripple itself doesn\u2019t use the XRPL for payments:<\/p>\n<div id=\"blockquote-block_c967a912080ddfb9790a792101bd5758\">\n<p>Even Ripple can\u2019t use the XRPL DEX for payments yet because we can\u2019t be sure a terrorist won\u2019t provide the liquidity for payment. Features like permissioned domains will address this.<\/p>\n<p><img decoding=\"async\" data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" src=\"https:\/\/cdn.cryptonews.com.au\/2024\/10\/23122852\/David-Schwartz-Ripple-CTO.jpg\">        David Schwartz, Ripple CTO    <\/p>\n<\/div>\n<p>With regard to volatility, Schwartz said that \u201cthere are use cases where volatility isn\u2019t a minus, or is even a plus.\u201d<\/p>\n<p>\u201cGenerally, for most digital assets the general view is that the upside is worth more than the downside, so as long as you aren\u2019t very risk averse, holding it is not really a disadvantage,\u201d Schwartz said.\u00a0<\/p>\n<p>Regarding institutional use, the CTO explained that interoperability and asset portability will ultimately matter more than which specific blockchain is used. He sees a multi-chain future as both inevitable and beneficial for scalability, and argues that large institutions \u2013 like BlackRock \u2013 may follow a logic similar to Circle\u2019s with USDC.<\/p>\n<h2 id=\"h-make-hay-where-the-sun-shines\">Make Hay Where the Sun Shines<\/h2>\n<p>On geopolitical risk, he explained that the XRP Ledger isn\u2019t inherently US-controlled, saying it has \u201cnever discriminated against any particular participant\u201d and that Ripple operates through licensed entities globally. He admitted however, that in sensitive regions, US affiliation may still provoke pushback, but emphasised that Ripple focuses on building trust and operating where it\u2019s most welcomed.<\/p>\n<div id=\"blockquote-block_b3a5e20a2f49678f0c921056bdf153f8\">\n<p>You\u2019re not going to see it in North Korea or Cuba any time soon and there might be, in some cases, pushback to a US company having some control over, say, payments between Pakistan and Saudi Arabia. We build trust and we make hay where the sun shines.<\/p>\n<p><img decoding=\"async\" data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" src=\"https:\/\/cdn.cryptonews.com.au\/2024\/10\/23122852\/David-Schwartz-Ripple-CTO.jpg\">        David Schwartz, Ripple CTO    <\/p>\n<\/div>\n<p><strong>Related:<\/strong><a href=\"https:\/\/cryptonews.com.au\/news\/australian-analyst-says-white-house-crypto-report-could-see-increasing-bitcoin-volatility-130182\/\"><strong> <\/strong><strong>Australian Analyst Says White House Crypto Report Could See Increasing Bitcoin Volatility<\/strong><\/a><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/cryptonews.com.au\/news\/ripple-faces-scrutiny-over-bank-partnership-claims-as-cto-responds-to-transparency-concerns-130192\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>YouTuber Andrei Jikh challenged XRP\u2019s viability, questioning why Ripple\u2019s claimed 300+ bank partnerships haven\u2019t produced significant on-chain transaction volume over 13 years. Jikh raised concerns about XRP\u2019s volatility making it impractical as a bridge asset, especially when stablecoins are increasingly preferred for cross-border transfers. Ripple CTO David Schwartz responded by defending XRP\u2019s volatility as potentially [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":871643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1743,25213],"tags":[],"class_list":{"0":"post-871642","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-faces","8":"category-ripple"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/871642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=871642"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/871642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/871643"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=871642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=871642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=871642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}