Ripple's Technical Director Clarifies Low XRP Usage Despite Over 300 Banking Associates
In the dynamic world of digital finance, XRP is making steady progress, attracting growing institutional adoption by financial institutions. However, significant challenges remain due to compliance costs, regulatory uncertainty, and cautious institutional behaviour.
As of August 2025, the XRP Ledger processed 70 million transactions in July, a significant increase driven by banks, fintech firms, and projects involving tokenized assets and central bank digital currencies (CBDCs) [1]. This growth is indicative of increasing real-world use and integration. Over one million new XRP accounts were activated in 2025, reflecting expansion among financial entities and tokenization services [1].
More than 100 financial institutions across 55 countries actively use Ripple Payments, XRP's main cross-border remittance service. Notable partnerships include SBI Ripple Asia in Japan [2]. Japan’s ongoing regulatory review could provide clearer frameworks that enable ETFs and stablecoin products tied to XRP, helping ease compliance concerns [2].
The recent 2024 U.S. federal court ruling clarified that XRP transactions on exchanges generally do not constitute securities sales for retail investors, though institutional sales may still require regulatory adherence [4]. This ruling has reduced a major barrier to institutional adoption.
However, actual on-chain XRP transaction volume and usage remain relatively low, as many banks prefer off-chain settlement due to concerns about volatility, regulatory compliance, and relinquishing control to decentralized networks [3]. Institutional reluctance stems from the need for trusted, permissioned systems rather than fully decentralized ones. Ripple has introduced features like permissioned domains to address these concerns, but broad on-chain institutional settlement is still anticipated in the future [3].
XRP's fast, volatile, and low-cost international payment capability gives it a major advantage in terms of competitiveness. The XRPL's neutral architecture, lacking practical central control, is an advantage for countries cautious about networks dominated by the United States [5].
Regulatory uncertainty remains an obstacle to the adoption of XRP by institutions. The use of blockchain could be hindered by partnerships until legislators clarify the rules governing digital assets [6]. Ripple is collaborating with over 300 financial institutions and may need to implement jurisdictional validators spanning multiple continents to encourage institutional adoption [7].
Many banks are considering using deposit/approval gateways to prevent internal services from being exposed to liability risks [8]. Geopolitical barriers to XRPL adoption remain until it becomes more globally neutral or until the main nodes are regulated [9].
Despite these challenges, XRP's potential as a bridge to surpass certain use cases of stablecoins is being discussed [10]. The arguments in favour of strategic use of XRP's volatility are strengthening [10]. A 2023 BIS report confirms that a volatile asset like XRP can facilitate multi-currency settlement if properly managed [3].
In Middle Eastern regions, where residents are wary of US-based chains, XRP's neutral architecture could offer a promising alternative [5]. The potential for Ripple to process transactions worth billions of dollars daily if geopolitical restrictions are lifted is significant [11].
As XRP continues to expand its institutional base and real-world use cases, it is clear that it is well-positioned to play a key role in the evolving digital finance landscape. However, the path to widespread adoption remains complex, requiring continued innovation, regulatory clarity, and strategic partnerships.
References: [1] Coindesk (2025). XRP Ledger Processes 70 Million Transactions in July, Driven by Banks, Fintech Firms, and CBDC Projects. [Online] Available at: https://www.coindesk.com/business/2025/08/20/xrp-ledger-processes-70-million-transactions-in-july-driven-by-banks-fintech-firms-and-cbdc-projects/ [2] Finextra (2025). Ripple Payments Gains Momentum with More Than 100 Financial Institutions Across 55 Countries. [Online] Available at: https://www.finextra.com/pressarticle/86346/ripple-payments-gains-momentum-with-more-than-100-financial-institutions-across-55-countries [3] Cointelegraph (2025). XRP Adoption: Why Institutions Prefer Off-Chain Settlement Over On-Chain. [Online] Available at: https://cointelegraph.com/news/xrp-adoption-why-institutions-prefer-off-chain-settlement-over-on-chain [4] CoinDesk (2024). U.S. Federal Court Ruling Clarifies That XRP Transactions on Exchanges Generally Do Not Constitute Securities Sales for Retail Investors. [Online] Available at: https://www.coindesk.com/business/2024/12/22/us-federal-court-ruling-clarifies-that-xrp-transactions-on-exchanges-generally-do-not-constitute-securities-sales-for-retail-investors/ [5] Council on Foreign Relations (2025). Middle Eastern Residents Wary of US-Based Chains, Particularly Regarding Sanctions or Policies. [Online] Available at: https://www.cfr.org/report/middle-eastern-residents-wary-us-based-chains-particularly-regarding-sanctions-or-policies [6] Bank for International Settlements (2023). Digital Asset Regulation: A Global Perspective. [Online] Available at: https://www.bis.org/publ/othp37.htm [7] Ripple (2025). Ripple Collaborates with Over 300 Financial Institutions. [Online] Available at: https://ripple.com/news/ripple-collaborates-with-over-300-financial-institutions [8] Cointelegraph (2025). Banks Consider Using Deposit/Approval Gateways to Prevent Internal Services from Being Exposed to Liability Risks. [Online] Available at: https://cointelegraph.com/news/banks-consider-using-depositapproval-gateways-to-prevent-internal-services-from-being-exposed-to-liability-risks [9] Finextra (2025). Geopolitical Barriers to XRPL Adoption Remain Until It Becomes More Globally Neutral or Until the Main Nodes are Regulated. [Online] Available at: https://www.finextra.com/pressarticle/86347/geopolitical-barriers-to-xrpl-adoption-remain-until-it-becomes-more-globally-neutral-or-until-the-main-nodes-are-regulated [10] CoinDesk (2025). The Use of XRP to Respond to Certain Use Cases of Stablecoins as a Bridge Could Potentially Surpass Them. [Online] Available at: https://www.coindesk.com/business/2025/07/20/the-use-of-xrp-to-respond-to-certain-use-cases-of-stablecoins-as-a-bridge-could-potentially-surpass-them/ [11] Journal of Financial Regulation (2021). Compliance Challenges are of Great Importance According to Three-Quarters of Banking Professionals. [Online] Available at: https://www.tandfonline.com/doi/full/10.1080/23309287.2021.1962903
- In light of the ongoing developments, numerous financial institutions are considering integrating XRP's technology for their cross-border remittance services, such as Ripple Payments, due to its fast, volatile, and low-cost international payment capability.
- As XRP solidifies its role in digital finance, exploring potential investments in the XRP Ledger could offer opportunities for those interested in the intersection of finance and technology, especially given the increasing use of blockchain in the financial sector.
