RIPPLE CTO DAVID SCHWARTZ JUST DROPPED A NUKE ON XRP HOLDERS

Added: 2026-06-03

[00:00:00]Shocking betrayal in XRP nation. The self-proclaimed CEO of the XRP community just dropped a nuke on the entire XRP club and it's pure irony. We going to play the clip here of David Schwarz actually dropping the hammer on the conspiracy theorists in the X space.

[00:00:17]It's going to be great to hear it directly from his own words. We also see Smoke Dog posting about 2017 to 2018 XRP saw 350x returns. Are we going back there soon? We also have Coindesk pointing out the Genius Act is going to superpower RLUSD, the XRP ledger, and of course, Ripple moving forward. And I got a ton of brand new data to go over, but we got to get to the best first as we always do. After years of riddles, bare memes, Q level lore, and the big one is coming vibes. He calls Joel Cat's reality check golden, and he basically tells everyone to stop believing in the secret plans and hidden NDAs. This is a clear violation of the XRP code club of conduct. You can't build an army of hopeium and critic and critique breadcrumbs for years, then implode the whole narrative in one tweet. Is the dream dying or is it 5G chess? Let's listen closely to the clip.

[00:01:17]>> You need to listen to this. It's very there's there there are a lot of NDAs around agreements, but like it's not like those agreements are earthshattering. It's just when Ripple, you know, signs an agreement with somebody, they generally have a non-disclosure agreement because they just their business is their business.

[00:01:32]There's no, you know, 90 again, 99% is what you see is what you get. And if you think that there's something because you heard a rumor about it, you heard something from unofficial sources, it's almost always going to it's either going to be false or it's just a very short period of time from when it becomes public. Some things have gone be gone public just a couple a short period of time, but there's there's no major secrets that have been going on for years or any or as far as I know anyway.

[00:01:57]Now, just to be clear, I have a pretty good idea of what's going on at Ripple.

[00:02:01]If things are going on at other places, I have a pretty good idea of what's going on at the XRPL Foundation. I have a pretty good idea of what's going on some places, but like there's a lot of places where there could be stuff going on that I know nothing about.

[00:02:11]But, you know, as far as I know, there's no there's no conspiracy. There's no secret plan. There's no, you know, the government's about to do some big thing having to do with Xi. There's nothing like that that I that I know of anyway.

[00:02:25]And so if if if your involvement or investment is based on the belief that there's some big secret going on that's going to I think you probably uh are full.

[00:02:33]>> So I had to cut off the last word because there was some interference. But I think there are two options. David just ended the law and riddle season or he just opened the next chapter.

[00:02:45]>> What do we do, man? Even when David comes out and says that the people pushing, you know, these big conspiracies of XRP price explosion or some secret government thing is happening, you know, and they have inside information into those things happening. Well, when are those things supposed to play out? David says you're full of I don't know what to do here, right? I think we need to stick to the basics and the facts that we know, right? We want to believe that something big is happening behind the scenes because there is probably something big happening behind the scenes but not maybe exactly what we've been led to believe here. I think that you have NDAs with some of the largest banks and corporations and they are looking to use products like XRP for crossber payments and maybe some other use cases. Of course, they want to work with Ripple because Ripple is one of the biggest blockchain infrastructure companies in the world. But when we're talking about, let's say, the Japanese government, you know, and their whole economy crashing and X coming in to save the day and that's going to take us $10,000, I think people are starting to get tired and they're calling those specific people out saying that, hey, if you're believing in those people and if you're investing because what those people are saying, you're probably not going to like the outcome here. So, you know, I've adjusted my expectations over the last few years. When I first got into XRP, I got sucked in to all the opium and the promises of bigger prices, right? But you don't hear me talking about that much anymore, right? We're going to the basics. We're going to the facts. We're going to what we can prove and what we know because that is all that matters here, right? price will get there eventually, but it's going to be a slower process and you need to stop listening to the people that are selling you fairy tales. That is what I heard there. Let's move on. Bank says, "David Schwarz, just set the record straight.

[00:04:37]Ripple NDAs are for real business partners, not secret government missions. Stop chasing theories and focus on the fundamentals, the tech, the adoption, the utility, the version of XRP that we believe it doesn't need a hidden agenda to win. Very well said, bank XRP. I love it, man. All right, let's move to this. This is important to remember about XPrice. In 2017 and 2018, XRP delivered nearly 350x returns.

[00:05:04]Bitcoin returned a 14x. Ethereum returned a 100x. That means X price increase was roughly 24 times steeper than Bitcoins. And this happened before Ripple completed any of the major institutional acquisitions. Just early network momentum. Today the picture is completely different. Since 2017, Ripple has completed strategic acquisitions totaling over three billion to build institutional-grade infrastructure. The key moves include Medicode 2023 for 250 million, bank grade custody now used by G standard custody 2024, New York regulated trust services, Hidden Road 2025 1.25 billion now Ripple Prime a prime brokerage clearing trillions annually. Rail for 200 million stable coin powered payments 10% of global business-to business payments. G Treasury for 1 billion. That seems like a deal now. Corporate treasury management for Fortune 500 companies.

[00:05:59]Palisade 2025 advanced wallet and custody technology. This creates a much stronger foundation for durable price appreciation in XRP. Now, now add Swift, Fed Now, and DTCC integration potential into the equation. Excuse me. And it becomes clear that XRP's past returns may have only been a preview of what the future network value will become. And so you start to wonder how big of an impact the new acquisitions will have and how quickly the impact they will. That's the stuff we know. That's the stuff we can see. That's the stuff we can rely on.

[00:06:33]You also had Brad Garlinghouse.

[00:06:35]Congratulations. Ripple co named the Harvard HBS Business School Association.

[00:06:42]Northern California's business leader of the year. Brad Garlinghouse. My man.

[00:06:46]Looking at him on stage here getting his award. Awesome. Great to see. You got Ripple here in the background. Good for you, Brad. Strong. All right. And then Dan Gamber says, "It's easy to think the crypto market is slowing down.

[00:07:00]Meanwhile, the numbers are doing something else entirely as data suggests we're about to have the first institutional crypto bull market while retail stays sidelined." Exodus CEO JP Richardson says institutions are accelerating their crypto participation this year even as retail pulls back and what could be crypto's first institutional bull market. Is this really happening? An institutional bull market. If you've been in crypto for any amount of time, it's been retail that has driven bull markets. It's been that parabolic retail FOMO play every cycle like clockwork actually. But this cycle for the first time in an extended manner we have seen retail get frustrated and leave while institutions right now step in and they position themselves. So I want to discuss that and I want to look at Ethereum chart because the Ethereum chart Ethereum in general is part of the institutional play right behind Bitcoin and all coins are tagging right along to that entire story. But right now, Ethereum, I just noticed this, is setting up for the first time since 2023.

[00:08:07]I'm sorry, for the fourth time since 2023, a setup that has led to some type of recovery. All right. Is it >> I hear the CEO JP Richardson says Ethereum about to go on a run? If Ethereum goes on the run, there's going to be a lot of things that go with it.

[00:08:19]With the Genius Act setting new standards, capital is increasingly shifted from offshore stable coins towards regulated options like USDC and others like RLUSD and are well positioned to benefit from this trend.

[00:08:31]Let's get into this information because it is eyeopening. There's a major stable coin shift happening in North America and it's being driven by compliance.

[00:08:39]USDT dominance dropped from 71% to under 60% last year. Meanwhile, USDC climbed to nearly 25% market share. And on North American exchanges, its usage surged to almost 46%. Since the passing of the Genius Act, capital is consolidating into trusted, regulated stable coins.

[00:08:58]And that's where RLUSD comes in. Since launching in December 2024, RLUSD has already grown to over 1.54 billion in market cap, quickly breaking into the top 10 alongside players like PYUSD. As regulation tightens, adoption is shifting toward what stable coins like RLUSD are built for. Transparency, trust, institutional readiness. Read more on the >> All right. And I want to get into some of this information and show you what they are saying here. At the same time, onchain liquidity has emerged as an important complement to centralized markets. Stable coin liquidity pools across major blockchain networks including Ethereum Salana and the XRP ledger support a wide range of activities spanning decentralized trading, lending and borrowing, cross-chain settlement, and automated liquidity provisioning. Ethereum continues to dominate as the preferred venue for institutional DeFi participation and real world asset related liquidity. While Salana has gained traction as a high throughput environment optimized for paymentoriented flows, the XRP ledger remains the focus on enterprisegrade settlement particularly for crossber transactions. The XRP ledger remains the focus on enterprisegrade settlement particularly for crossber transactions.

[00:10:11]Remember while all of these hacks are going on with Ethereum and Salana, the XRP ledger is looking more and more ready for more institutions to come in and start using it. Right? These feel like the kind of kitty pools. And we have the adult pool over here that has going to have deep water, deep liquidity moving forward. And I think you're going to see RLUSD going from 1.5 billion to 5 or 10 billion pretty quickly here once more institutional capital starts to flow. You do have Coindesk starting to talk nicely about XRP. That is unusual unless something really big is going on, right? Ripple isn't just building a stable coin. is building a full financial stack. Recent acquisitions signal a clear strategy. Custody, treasury, prime brokerage, and payments infrastructure. This is about endtoend control of value movement. Instead of you going to four different companies for these four different services, you can go directly to Ripple and they can build you out a nice, you know, a nice stack, whatever you need, right? If you don't need custody, don't worry about it. We got you. If you don't need treasury, we got you. Right? They can mix and match and build a custom solution just for your company. Make sure you tell them Sensei sent you. All right. Wouldn't that be cool? You can start getting like referral checks from Ripple. Is that even possible? Maybe I should reach out. I should reach out.

[00:11:33]All right. Regulatory framework RLUSD issued by Standard Custody and Trust Company, a Ripple subsidiary operating under a New York department of financial services limited purpose trust company charter. This charter is widely regarded as the gold standard for stable coin regulation globally requiring continuous state level supervision comparable to traditional regulated financial institutions. The New York Department of Financial Services oversight mandates strict consumer protection requirements, reserve standards, and redemption. This is what you don't see for USDT Tether, right?

[00:12:08]RLUSD maintains 100% backing through its US dollar deposits and short-term US Treasury bonds. And of course, we know that they are working with some of the largest banks to do that. And then of course, Genius Act alignment. You are starting to see the rulemaking get in initiated for Genius Act over the last few months. That's going to really help out Ripple, RLUSD, and of course the XRP ledger moving forward. Now, you did have this. I thought this was interesting to throw in here. Chartner nerd says RDC launched XRP depository receipts. DRS are they called which are custodied at Anchorage Digital and settled through the DTCC.

[00:12:43]And so here's the clip here.

[00:12:45]>> So by acting together with industry participants with our our clients, we're creating an ecosystem built around the core power of blockchain rails. This our ability to drive standards. The fact that we touch virtually every market participant allows us from the position that we're in to actually fundamentally drive this change, the change that's coming and the change that has so many benefits to investors, to banks and and beyond. So in blockchain networks, all right, and then of course uh Chad also pointed out the DTCC on a fulltime mission to tokenize the entire US capital markets. And we do know that the XRP ledger is a uh pre-approved blockchain to work inside of the system and also the the the deposit receipts.

[00:13:34]It means the XRP ledger now has DTCC plumbing wrapper security that institutions can trade settle on traditional rails by Ripple linked infrastructure anchorage hidden road.

[00:13:44]Ripple prime is plugging XRP and the Xedger into post trade stack with the DTCC who uses Wall Street. And then what the XRP DR actually is, deposit receipts corporation has launched a XRP depository receipt. It's structured as a security. XRP DRS are securities that represent direct ownership of underlying XRP held at Anchorage Digital National Association, a federally chartered digital bank. Each DR is one to one backed by E and is fully fungeible with the underlying asset and can be created and redeemed in kind where regulations permit. and how like the DTC's DTCC angle the XRPDRS are DTCC eligible meaning that they can be electronically settled through the the depository trust company the core securities depository that is the DTCC then Anchorage and RDC emphasized that this product is a DTCC settlement eligible giving it straight through processing into the same back office pipes used for stocks bonds and other DRS that is big news and we also heard why institutions in the US haven't or why institutions haven't used the XR XRP ledger yet or haven't used the XRP ledger how they plan to. And I thought this is a great video that I played the other day.

[00:14:54]>> Ever wonder why big banks haven't really moved onto public blockchains yet? Most people assume it's just regulation. But there's also a more practical issue, and that's trade protection. On a public chain, every position is visible in real time. That means anyone can see what you're doing and trade against you. And when you're moving hundreds of millions to billions of dollar value, full transparency can make you a target. But that's starting to change. Last week at Paris Blockchain Week, Boundless and Ripple announced zero knowledge proofs are coming to XRP. This means that anyone can now prove a transaction is valid, funded, and compliant without ever having to reveal the amount, the sender, or the receiver. There's already four major global financial institutions that have signed up for this feature.

[00:15:44]This is a meaningful step toward further building financial utility on chain. All right, guys. And of course, we know that all of this stuff is happening on the XRP ledger. Native DEX and AMMs, token esro and batch transactions and multi-purpose tokens. So much is going on. Make sure that you're subscribed and following. Support the content with a like. Let me know if you have any question or comment about any of this.

[00:16:04]I'm sure I will get some people in the comments, you know, some snarky comments, but all good. You know, I think I think we need to adjust our expectations here and I think we need to start dealing in facts and not fantasy.

[00:16:16]And I think people need to kind of snap out of it and realize that some people are just selling you something instead of giving you the information that you need to to understand the market. So, you know, research or selling you something. You're here for research.

[00:16:32]This isn't the I'm selling you something channel. All right, I'll see you next time.