Schwartz: Permissioned On‑Chain Domains Could Unlock Institutional XRP Flows
Ripple CTO David Schwartz explained why institutional activity has largely remained off‑chain: compliance, counterparty risk and regulatory controls have prevented high‑value settlements on public ledgers. Schwartz acknowledged slow progress but said institutions are beginning to appreciate on‑chain operational and cost advantages. A key limitation today is the inability to guarantee that on‑ledger liquidity isn’t sourced from prohibited actors, making many regulated entities unwilling to route large payments through public decentralized exchanges — including some flows on the XRP Ledger. Schwartz pointed to permissioned domains (on‑chain features that restrict counterparties and liquidity sources) as a practical path to resolving compliance barriers and enabling large-scale institutional settlement. Software engineer Vincent Van Code framed these remarks as a bullish long‑term signal for XRP, suggesting that permissioned domains could unlock trillions in annual on‑chain volume with XRP positioned to capture meaningful share. The article frames the issue as infrastructural and regulatory rather than a lack of demand. Disclaimer: not financial advice.
Bullish
The article highlights infrastructure and regulatory hurdles rather than lack of demand, and identifies permissioned domains as a feasible technical solution that could unlock large institutional flows. For traders, that is a constructive narrative for XRP: if permissioned domains or comparable compliance tools are implemented, institutional liquidity could move on‑chain, increasing on‑chain volume and demand for XRP (used for settlement/liquidity on the XRP Ledger). Historically, protocol-level or compliance‑focused upgrades (e.g., staking rollouts, custody integrations, exchange listings) have produced bullish price moves as institutional access improved. Short term, the market reaction may be muted or mixed — the piece admits adoption is slow and practical risks remain, so expect volatility around announcements and incremental progress. Long term, successful deployment of permissioned domains and visible institutional on‑chain use could materially increase utility and demand, supporting higher valuations. Traders should watch for concrete product releases, pilot programs with banks, regulatory clarity, and on‑chain volume metrics; these catalysts would validate the bullish thesis. Risk factors include regulatory pushback, slow uptake, or technical limitations that delay institutional migration, which could keep momentum limited despite positive narrative.