The conversation around XRP is once again shifting toward its underlying technology rather than just price action. Breaking the notion, David Schwartz, also known as JoelKatz, the CTO of Ripple, said that the future of XRP may be widely misunderstood.
Speaking at XRP Australia 2026, Schwartz addressed what he believes is the biggest misconception about XRP heading into the next crypto cycle: many people still think the asset’s value comes only from the XRP Ledger itself.
Schwartz explained that focusing only on the ledger misses the bigger picture of how XRP actually functions in the broader financial ecosystem. According to him, most XRP activity takes place outside the blockchain.
“Don’t forget XRP is not just the XRP Ledger. The vast majority of XRP activity takes place off the ledger,” he said.
He pointed out that trading on exchanges, liquidity provision, ETF exposure, and speculation are currently the biggest drivers of XRP’s value. While these factors may not sound technologically groundbreaking, Schwartz emphasized that they still represent real economic activity for users and investors.
To explain the misunderstanding, he compared XRP to traditional currency. “If you think of XRP as just the XRP Ledger, that’s like thinking about the dollar as just paper dollars,” he said, noting that the system surrounding the asset is far larger than the technology itself.
While off-chain activity dominates today, Schwartz believes the next phase for XRP will increasingly involve on-chain financial tools built directly on the XRP Ledger.
He expects the ecosystem to expand into areas such as decentralized exchanges, liquidity infrastructure, tokenized equity markets, and lending solutions.
“You’re going to see liquidity, DEX, and tools that solve real financial problems,” Schwartz said, adding that bringing more activity onto the blockchain could make the system far more transformative.
Another misconception, according to Schwartz, is that XRP’s goal is limited to institutional adoption. He argued that institutions are only the starting point.
“Institutional adoption is not the end goal… It’s going to pave the way for mass retail adoption,” he stated.
Schwartz compared the process to the early days of the internet, where enterprise and government use came first before the technology expanded to everyday consumers.
In the long run, he says XRP’s mission is far broader, helping reshape the entire global financial system, not just institutional finance.
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