Expert Says Claim That Institutions Will Replace XRP With Their Own Blockchains Is One of the Worst Takes

An influential XRP community figure has pushed back against claims that large financial institutions would replace the XRP Ledger (XRPL). 

Vet, a dUNL validator on the XRP Ledger, took to X to mock the argument that some critics make about XRPL, particularly the claim that big institutions will ignore XRPL.  He finds this assertion funny, describing it as the “worst take” in the XRP ecosystem.

Notably, the XRP Ledger, which powers Ripple’s cross-border settlement technology, has gained adoption from several major financial institutions, including SBI Holdings, MoneyGram, and Tranglo.

While some of these firms may no longer maintain direct partnerships with Ripple or use XRP for settlement, others continue to rely on RippleNet, the company’s payment network.

How the Idea of Institutions Replacing XRPL Emerged

Speculation about institutions replacing the XRPL gained momentum as major players began developing their own private, proprietary blockchains. Firms such as JPMorgan and Goldman Sachs have already built in-house blockchains for various digital asset applications.

Moreover, SWIFT, which many hoped would be replaced by XRPL, partnered with ConsenSys to integrate a blockchain-based ledger for cross-border settlement. Moreover, SWIFT is preparing to launch its own blockchain solution.

Despite the growing adoption of private blockchains, Vet believes these developments do not invalidate the XRP Ledger’s relevance.

Why Institutions Can’t Simply Replace the XRPL

The idea that institutions will replace the XRP Ledger with private blockchains overlooks the XRPL’s core advantages. Beyond fast and low-cost transactions, the XRPL’s public, permissionless design allows institutions, developers, and users to all interact on a shared ledger—something private chains cannot easily replicate.

Moreover, institutions typically build their private networks on established blockchain infrastructures rather than creating and maintaining a fully new one from scratch. SWIFT, for instance, is testing its on-chain payments on Linea, an Ethereum-based Layer-2 scaling solution.

For these reasons, Vet believes the idea that the XRPL can be “easily replaced” ignores how difficult it is to build a blockchain and how many advantages the XRP Ledger already offers.

Community Reacts

Meanwhile, Vet’s commentary has drawn mixed reactions from XRP community members. Many users supported his view that major institutions cannot simply replace the XRPL with their own blockchains.

One user even compared the idea to claiming that every company should build its own Instagram. Another added that it’s like going back to the 1980s and expecting everyone to create their own version of the Internet rather than build on the efficient system that already exists.

“Companies will just build their own instagram.”

— J (@JoeBalaclava) December 4, 2025

However, not everyone fully agreed. One user acknowledged that institutions are unlikely to replace the XRPL with their own networks, yet argued that this does not mean they will adopt the XRPL either.

The commentator pointed out that several financial institutions have already built their own systems or chosen other blockchains. For example, JPMorgan operates Kinexys, while SWIFT is using Linea for its on-chain payment solution.