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- Ripple’s wide banking network hasn’t translated to high on-chain XRP volume, causing growing skepticism.
- Regulatory risks, security concerns, and institutional habits continue to slow XRP’s shift to on-chain use.
Ripple has signed over 300 banking partnerships since it began its journey in 2012. Despite this extensive network, XRP’s daily on-chain volume remains far below expectations. The gap has triggered concern and confusion among long-time observers, such as American YouTuber Andrei JikhI, who asked: after more than a decade, why hasn’t XRP reached billions in daily volume?
Ripple CTO David Schwartz responded by pointing out that many institutions still prefer off-chain use of digital assets. He stated,
I think we’re close to changing that because institutions are starting to see the benefits of moving on chain. But I agree it has been very slow.
He added that Ripple itself hasn’t been able to use the XRPL decentralized exchange for payments due to compliance concerns, stating, “We can’t be sure a terrorist won’t provide the liquidity for payment.”
"Ripple has 300+ bank partnerships, but after 13 years, shouldn't there be billions in daily on-chain volume?"
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…
— David 'JoelKatz' Schwartz (@JoelKatz) July 30, 2025
XRP Volatility Seen as Trade-Off, Not a Flaw
According to Schwartz, perhaps the most notable contributor to gradual adoption is institutional reluctance toward regulatory risks. Despite the infrastructure of Ripple and the global network, the financial institutions hesitate in adopting full on-chain functionality. He stated that permissioned domain functions might eventually ease these concerns.
Another common question is the volatility of XRP compared to stablecoins. Critics argue that stablecoins, pegged to fiat, are less uncertain. To that, Schwartz replied that volatility is not always negative. He emphasized that “for most digital assets, the general view is that the upside is worth more than the downside, so XRP is still worth using for those not highly risk-averse.
He also addressed the question of the need to hold XRP. As a bridge asset, it must always be held by someone to ensure liquidity when needed. Schwartz said,
You may hold the dominant bridge currency because it should be cheaper to exchange into whatever you happen to need next.
Stablecoins Won’t Replace XRP — Schwartz Explains Why
As for the idea that stablecoins could potentially make bridge currencies such as XRP, for instance, obsolete, Schwartz disagreed. He said that no global domination is possible for a single stablecoin because of its inherent connections with a particular fiat currency and a nation’s jurisdiction. He opined,
If we’re in a multi-stablecoin world, it still makes sense to have a bridge asset.
The CTO also commented on the issue that companies like BlackRock would prefer tokenization on XRPL instead of building their own chains. He gave the example of Circle not deploying USDC only on a proprietary chain. He clarified,
I think the same kind of logic will apply to tokenized real world assets over the next year or two.
Geopolitical concerns regarding trust were also another major concern. Schwartz clarified that the XRPL itself is not in the US and has never discriminated against anybody because of the country. Nevertheless, he concurred that the enterprise products of Ripple, which are within the jurisdictional reach, may face resistance in some regions. He admitted,
You’re not going to see it in North Korea or Cuba any time soon.
The bridge status of XRP continues to raise eyebrows. The technology is in place. The partnerships are there. However, billions of daily volumes remain out of reach. Responses from Schwartz made clear that the regulatory hurdles, security concerns, and institutional hesitancy are primary barriers that need to be surpassed.
