Caitlin Long, founder and CEO of Custodia Bank, recently delivered a scathing critique of Ripple and its XRP ecosystem during an appearance on the Gold Goats ‘n Guns podcast. She cast doubt on Ripple’s credibility, its tokenomics, and its overall viability as a player in institutional finance. Long’s remarks come amid ongoing discussions about potential regulatory approvals that could position Ripple favorably within the financial industry, which she strongly disputed.
Long expressed that Ripple’s legacy structure poses significant challenges, emphasizing that banks have historically been wary of the network due to its centralized architecture and problematic tokenomics. She criticized the XRP supply model, which was established through a large pre-mine and early fundraising, suggesting that this has eroded institutional trust. “Those who extracted money upfront will always raise suspicions about possible exit scams,” she warned, contrasting Ripple’s model unfavorably with those of Bitcoin and Ethereum, which had little or no pre-raising.
Additionally, Long assessed Ripple’s recent shift towards launching its own regulated stablecoin as a sign of retreat. She suggested that this move indicates a failure to gain the anticipated traction with its core blockchain solution, which was initially intended to facilitate interbank settlements. “They are trying to establish a regulated financial infrastructure instead of being the foundational layer for banks,” she stated, reinforcing the idea that Ripple may not be achieving its original objectives.
Long’s comments also touched on Ripple’s ongoing legal challenges, notably the SEC lawsuit accusing the company of conducting an unregistered securities offering. She acknowledged the broader impact of the regulatory landscape under the Biden administration, while arguing that Ripple’s ambitions to become the basis for U.S. Treasury tokenization are unlikely to be fulfilled, with Ethereum positioned as the more mature alternative for such endeavors.
In response, members of the XRP community reacted strongly, labeling Long’s analysis as “ugly tribalism” and accusing her of conflating Ripple with the decentralized XRP Ledger. Some supporters expressed frustration, suggesting that Long’s criticism may stem from Custodia Bank’s struggles with obtaining a Federal Reserve master account, which Ripple is perceived to be on track to secure.
Ultimately, Long’s remarks reflect a longstanding belief in the essential qualities that blockchain infrastructure must possess to be considered trustworthy by financial institutions: decentralization, transparency, and long-term neutrality. As she noted, Ripple has been in operation longer than many competitors but has not made substantial advances in achieving its goals.
At the time of writing, XRP was trading at approximately $2.94, reflecting the market’s reaction to the evolving narrative around Ripple and the broader crypto landscape. The ongoing developments in regulatory approvals and technological advancements will be critical for Ripple’s future prospects and its community.