Ripple CEO States Major Path to More Institutional Adoption on XRP Ledger

A quiet but powerful evolution is unfolding on the XRP Ledger (XRPL) — one that could redefine how financial institutions engage with blockchain ￰0￱ race for institutional adoption has long centered on compliance, scalability, and trust. Yet, as Ripple’s CEO Brad Garlinghouse recently emphasized in a conversation referenced by XRPL contributor Vet, the key to unlocking this next phase of growth can be captured in a single word: ￰1￱ Institutional Roadblock: Privacy and Compliance For years, the biggest challenge for banks and major financial entities has been balancing blockchain transparency with ￰2￱ institutions cannot afford to expose transaction hashes or customer data ￰3￱ to Vet’s recent post on X, Garlinghouse identified privacy as the primary obstacle preventing deeper institutional integration with the ￰4￱ developments align with Ripple’s current focus on features such as Decentralized Identifiers (DID), On-Chain Credentials, and the upcoming Permissioned Domain/DEX, which enable regulated participation while protecting institutional ￰5￱ upgrades will enable organizations to verify identities and ensure compliance (such as KYC and AML) directly on-chain while keeping sensitive details encrypted.

I asked Brad here what's the path to get more institutional adoption on the XRP Ledger, so that institutions are comfortable with sharing tx hashes with us. >He said ￰6￱ forward it all makes sense and fits nicely ￰7￱ passed many compliance amendments like… ￰8￱ — Vet (@Vet_X0) October 5, 2025 Building the Infrastructure: Tokenization and On-Chain Liquidity The XRPL is also strengthening its foundation for asset tokenization and liquidity ￰9￱ introduction of Multi-Purpose Tokens (MPTs) allows issuers to tokenize real-world assets more efficiently by embedding metadata and regulatory attributes directly into the ￰10￱ makes them suitable for institutions that demand traceability and compliance ￰11￱ XRPL’s hybrid DEX-AMM system combines a high-performance order book with automated liquidity pools, creating deep and efficient ￰12￱ combination positions the XRPL as one of the few networks capable of supporting institutional-grade asset trading natively, without relying on external bridges or custodial solutions.

What’s Still Missing: Privacy Enhancements and On-Chain Credit Despite its strong foundation, Vet noted that two major features are still pending before the XRPL reaches full institutional readiness: privacy protocols and lending/borrowing mechanics (XLS-66). Zero-Knowledge Proof (ZKP) technology will enable private transactions while maintaining on-chain cryptographic ￰13￱ privacy, ZKPs also contribute to scalability through ZK rollups, which enable heavy computations to occur off-chain, while only verifying the proofs on-chain — thereby improving throughput without sacrificing ￰14￱ are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Meanwhile, XLS-66 aims to bring native lending and borrowing functionality to the ￰15￱ would allow institutions to collateralize tokenized assets and borrow or lend in a fully compliant and privacy-preserving environment, a critical feature for building credit markets on the ￰16￱ Final Piece: Smart Contracts as the Network’s “Glue” Vet also highlighted the upcoming XLS-101 Smart Contracts as a pivotal element for XRPL’s next ￰17￱ smart contracts will serve as the connective tissue binding all the network’s features together — from tokenization and lending to compliance enforcement and ￰18￱ XLS-101, the network will gain confidence through XLS-100 Smart Escrows and the introduction of WebAssembly (WASM), which will expand the XRPL’s scripting ￰19￱ established, these components will enable developers and institutions to deploy secure, modular applications directly ￰20￱ a Crescendo of Institutional Adoption The roadmap Vet described points to a cohesive strategy where every layer of the XRPL — identity, tokenization, liquidity, privacy, and programmability — works in ￰21￱ these developments, Ripple and its partners are shaping a blockchain environment that can meet the rigorous demands of financial institutions ￰22￱ Vet concluded, the coming integration of privacy and smart contracts could create a “crescendo on-chain,” a moment where bottom-up innovation and top-down institutional participation finally converge on the XRP Ledger — unlocking its full potential as the backbone of compliant, global blockchain ￰23￱ : This content is meant to inform and should not be considered financial ￰24￱ views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s ￰25￱ are urged to do in-depth research before making any investment ￰26￱ action taken by the reader is strictly at their own ￰27￱ Tabloid is not responsible for any financial ￰28￱ us on Twitter , Facebook , Telegram , and Google News