Ripple Engineer: XRP Ledger Will Be a Reliable Choice for Institutions

Ripple engineers, J. Ayo Akinyele, aim to increase the usage of the XRP Ledger (XRPL) and make it the first choice for institutions seeking innovation and security. Akinyele emphasized that they are focused on enhancing privacy, compliance, and trust at the protocol level to achieve this goal.

Akinyele stated that tools such as zero-knowledge proofs and confidential multipurpose tokens (MPT) could enable private and compliant transactions. He also expressed that they would provide support for tokenized real-world assets.

Akinyele argued that trust must be preserved for blockchains to scale. He stated that he believes the financial-focused structure and decade-long reliability of the XRP Ledger make it well-prepared for a wave of institutional adoption.

Akinyele noted that they are developing privacy-focused tools to ensure that the XRP Ledger becomes “one of the first choices” for institutions seeking innovation and security. In a blog post, he stated that financial transactions cannot be sustained in an environment without privacy. Akinyele emphasized that programmable privacy allows “honest participants to control what is revealed, with whom, and under what conditions.” This approach will also make it possible to provide the information regulators need.

Akinyele stated that on-chain privacy provides protection similar to encryption that secures online banking, and identified zero-knowledge proofs (ZKPs) as a mechanism for private yet compliant transactions. This mechanism can be used to prove that Know Your Customer (KYC) processes have been completed without spreading identities across the entire network.

Akinyele also argued that security and decentralization should not be sacrificed for scalability. He remarked that trusted execution environments (TEEs) and confidential computing methods enable the secure processing of sensitive transactions, asserting that these can help regulate transactions without risking market structure.

Akinyele outlined two key goals for the future. Firstly, he aims to implement ZKPs to perform private and compliant transactions and increase transaction speed, establishing XRPL as the institutional default within the next 12 months. Secondly, he expressed anticipation for the launch of confidential multipurpose tokens (MPT) by 2026, which will be a critical step for institutional adoption concerning real-world assets (RWA) and decentralized finance (DeFi).

Akinyele believes that the XRPL could serve as a bridge for trillions of dollars worth of assets moving on-chain over the next decade. This is due to XRPL's decade-long operational history and features such as built-in decentralized exchange, escrow, and payment channels that support financial transactions. Akinyele stated, “The future of blockchains belongs to builders that eliminate unnecessary trust,” arguing that if systems can prove correct transactions, prevent misuse, and protect data, public ledgers can provide the privacy, compliance, and efficiency that institutions require.