According to the Chief Architect of XRP Ledger, and the Honorary CTO David Schwartz of Ripple, most people who hold or follow XRP do not understand the original purpose for which its underlying network was designed.
Schwartz made the above remarks during the celebration of the public listing of Evernorth on NASDAQ. He stated that the most common misunderstanding lies in the positioning of XRP Ledger among the major blockchains. In his view, its functions are more than those of Bitcoin, but less than those of Ethereum or Solana, and this intermediate design is intentional.
Schwartz Misunderstandings That Want to Be Corrected
Schwartz describes this ledger as being built for a narrow set of financial tasks, rather than as a general-purpose computing platform. These tasks include:
- Real-world asset tokenization
- Payment and Liquidity
- Lending
- Stablecoins
He said that this focus makes the network very strong in certain use cases, but not suitable for other scenarios. It does not support all the applications that developers might create; instead, it provides what he calls “selected financial primitives,” which are intended to meet the standards expected by financial institutions.
Three Reasons Why Institutions Choose XRP Ledger
When asked why banks or financial companies should build on this network, Schwartz gave three reasons:
- Fast speed, low cost, and reliable.
- It is decentralized, so no single party can turn the system against users.
- It comes with ready-made financial tools.
RLUSD and the Future of Multi-Chain
Schwartz indicates that supporters of XRP Ledger should not expect a single-chain outcome. The RLUSD stablecoin of Ripple operates on XRP Ledger, but he stated that in order to reach more users and achieve deeper liquidity, it also needs to be deployed on other networks as well.
He explained this goal in a more personalized way. He said that people leave their money idle in bank accounts because transferring funds to places that can generate returns requires effort. He hopes that the industry will eventually reach a point where users only care about what their money is doing, rather than where it is kept.
AI Agents May Turn Blockchain into a Settlement Layer
When it comes to artificial intelligence, Schwartz mentioned that payments between high-frequency AI agents may be completed through fast and low-cost payment channels, while the final settlement will be conducted on the blockchain. He expects that some countries will become net buyers of AI services, while others will become net sellers. To balance these differences, he said that a neutral settlement network is needed. He did not specify that this network would be XRP Ledger.
Ripple's Highlights for 2027
Looking ahead to 2027, Schwartz mentioned that Ripple will acquire GTreasury and Hidden Road. He stated that Ripple is in the process of integrating these two businesses into one and plans to cross-sell products to customers who already handle trillions of dollars in funds through systems that do not involve cryptocurrencies.
Schwartz indicates that the listed cryptocurrencies represented by Evernorth are becoming connected with traditional finance. This also allows investors to hold XRP through retirement accounts and corporate balance sheets.
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