Why Is XRPL Volume Low? Ripple’s CTO Says Banks Are Settling Off‑Chain

Questions surrounding Ripple’s internal operations have resurfaced after YouTuber Andrei Jikh voiced skepticism about the company’s transparency and the effectiveness of its XRP initiatives, reigniting long-standing concerns from investors.

According to a recent X post, Jikh challenged Ripple’s claim of 300+ bank partnerships, citing a lack of on-chain evidence despite the company’s 13-year track record. 

“I know people are VERY opinionated about this, but I’ve been following XRP since 2014, and I still have not found the answers to these questions. Genuinely looking for thoughtful responses,” Jikh wrote.

Schwartz Responds to Jikh’s Questions

In response, Ripple’s chief technology officer, David Schwartz, attempted to address all six questions raised by the YouTuber to defend how the firm approaches transparency.

Schwartz noted that institutions have traditionally favored using digital assets in off-chain environments for a variety of reasons. However, this trend appears to be shifting as more organizations begin to recognize the advantages of on-chain integration.

“But I agree it has been very slow. Even Ripple can’t use the XRPL DEX for payments yet because we can’t be sure a terrorist won’t provide the liquidity for payment. Features like permissioned domains will address this,” Schwartz added.

He emphasized that in specific scenarios, volatility may not be a drawback. It can even offer strategic advantages. For many digital assets, the prevailing sentiment is that potential gains outweigh the risks, making asset holding a reasonable choice for those with moderate risk tolerance.

Regulatory Compliance in Multiple Regions

For bridge currencies, Jikh asked if they are still necessary when stablecoins will cover most pairs in the future. In response, he noted that for a bridge currency to function effectively, it must be readily available at the moment of need. It also requires someone to maintain a position in it at all times.

Regarding geopolitical risk, the company’s executive highlighted that XRPL is not a U.S.-based payment network. The system has historically remained neutral toward all participants. Should it ever display bias, one would reasonably expect users to abandon it.

Schwartz also disclosed that Ripple’s enterprise payment products have a separate license and are in several jurisdictions. However, these products are not in North Korea or Cuba, and the company has no plans in these areas.

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