Ripple Criticized by Custodia Bank CEO: “XRP Won’t Be Adopted by Banks, Ethereum is Preferred”

Jakarta, Pintu News – Caitlin Long, founder and CEO of Custodia Bank, recently criticized Ripple (XRP) and the XRP ecosystem in a well-known financial podcast. According to her, the chances of XRP becoming the main infrastructure of global finance are considered small, and she even called this project a credibility problem and a tokenomics model that makes banks distrustful. This statement sparked a strong reaction from the XRP community and added to the dynamics of debate in the crypto world.

A Critique of XRP’s Centralization and Tokenomics Model

Caitlin Long emphasized that Ripple’s main problem lies in its overly centralized structure and unhealthy tokenomics. She said the supply mechanism of XRP, which comes from pre-mine and massive fundraising at the beginning, makes financial institutions always suspicious. According to Long, this distrust is difficult to erase because early investors are considered to have the potential to “exit scam” or sell assets to retail investors.

Long compared Ripple’s case with Bitcoin (BTC) and Ethereum (ETH), which are considered more successful because they have minimal initial fundraising and have a higher level of decentralization. He considers this to be the reason banks and regulators are more inclined to choose Ethereum, which is technically considered more mature and ready to become a digital financial infrastructure, even for tokenizing assets such as US Treasuries.

Also Read: XRP 2026 Price Prediction: Potential to Touch $10, Solana the Main Challenger? Here’s the Analysis!

Ripple Shifts Focus to Stablecoins

In his critique, Long also highlighted Ripple’s decision to launch its own stablecoin, which he sees as a sign of failed adoption of Ripple’s blockchain solution in the banking sector. In his opinion, this move is a form of recognition that the main target of becoming the “base layer” to replace SWIFT was not achieved, so Ripple chose a new strategy to remain relevant in the world of digital finance.

He also commented on Ripple’s efforts to obtain a banking license in the US and the launch of a US dollar-based stablecoin. For some, this move is seen as innovation and adaptation, but for Long, it’s a backup plan as the initial adoption target is considered a failure.

XRP Community Reaction

Caitlin Long’s statement immediately drew strong reactions from the XRP community. Community leaders such as Crypto Eri slammed Long’s statement as “bad tribalism” and accused her of failing to distinguish between Ripple (the company) and the XRP Ledger (the decentralized protocol). There were also those who alleged that Long’s comments were triggered by personal disappointment over Custodia Bank’s failure to obtain a license from the Federal Reserve, while Ripple had the opportunity to obtain this status first.

However, despite the pros and cons in the community, Long’s critique highlights the importance of trust, decentralization, and transparency issues in the crypto world, especially for projects aiming for institutional adoption.

Current XRP Price and Its Implications

At the time of writing, the price of XRP stands at $2.94 or approximately IDR 47,972 per XRP (exchange rate 1 USD = IDR 16,321). While it is still one of the large-cap crypto assets, the development of institutional sentiment and projected adoption going forward will largely determine the future of XRP’s price and relevance in the global crypto ecosystem.

Also Read: Dogecoin Rises 3.5% Amid Death Cross Pattern, What Does It Mean for the Crypto Market? (7/8/25)

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Reference:

• Mitrade. Ripple Flamed By Caitlin Long:‘XRP Is Doomed, Banks Don’t Trust It’. Accessed August 7, 2025.