Ripple CTO Defends XRP Against Criticism by YouTuber Andrei Jikh

• YouTuber Andrei Jikh challenged XRPs viability, questioning why Ripples claimed 300+ bank partnerships havent produced significant on-chain transaction volume over 13 years.
• Jikh raised concerns about XRPs 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 XRPs volatility as potentially beneficial and promised regulatory features like permissioned domains to boost institutional adoption.
• Schwartz acknowledged geopolitical challenges for the US-affiliated network but emphasised Ripples global licensing approach and focus on operating in welcoming markets.

YouTuber Andrei Jikh took to Crypto Twitter to voice his concern over XRP and Ripple, specifically adoption, utility and long-term viability of the XRP Ledger (XRPL) ecosystem.

Jikh who has over two million subscribers on the video platform questioned why, despite Ripples claims of 300+ bank partnerships over 13 years, there isnt significant, verifiable on-chain volume to reflect this usage.

He also challenged the practicality of using XRP as a bridge asset, especially given its price volatility and the growing preference for stablecoins in cross-border transfers.

He then raised doubts about XRPs 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.

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Lastly, he questioned the global appeal of a US-based, privately controlled network in an increasingly fragmented and politically sensitive financial landscape.

Related: Institutions Quietly Pile Into XRP and Solana Ahead of Ripple SEC Verdict, Says Bitget

Ripples Chief Technology Officer (CTO), David Schwartz who goes by the moniker Joel Katz on CT answered with a detailed reply.

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 doesnt use the XRPL for payments:

Even Ripple cant use the XRPL DEX for payments yet because we cant be sure a terrorist wont provide the liquidity for payment. Features like permissioned domains will address this.

With regard to volatility, Schwartz said that there are use cases where volatility isnt a minus, or is even a plus.

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Generally, for most digital assets the general view is that the upside is worth more than the downside, so as long as you arent very risk averse, holding it is not really a disadvantage, Schwartz said. 

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 like BlackRock may follow a logic similar to Circles with USDC.

On geopolitical risk, he explained that the XRP Ledger isnt inherently US-controlled, saying it has never discriminated against any particular participant 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 its most welcomed.

Youre 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.

Related: Australian Analyst Says White House Crypto Report Could See Increasing Bitcoin Volatility