Top Expert Breaks Down the Real Reason XRP Exists

Prominent crypto pundit Paul Barron highlights the unfolding fragmentation of global finance, revealing the true motive behind XRP’s existence.

In a recent X post, Barron, the host of the Paul Barron Network (PBN), indicates that banks are currently racing to launch their own stablecoins.

Banks Pursuing Separate Stablecoin Initiatives

He pointed out that financial institutions, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, are currently developing a U.S. Consortium stablecoin.

While these respective stablecoin initiatives represent progress, they also introduce a key challenge in the form of fragmentation. Barron noted that these financial institutions are only seeking control, not shared, neutral infrastructure.

Highlighting this issue, Barron questioned how these isolated financial ecosystems would ultimately bridge their walled gardens and achieve true interoperability.

Why XRP Exists

Interestingly, he emphasized that this is exactly why XRP exists, suggesting that the token was designed to bridge this so-called walled garden.

In his reasoning, as banks create isolated ecosystems via their own stablecoins, a neutral bridge asset becomes essential for enabling value transfer between them. XRP, designed for fast, low-cost cross-border settlement, can serve as that interoperability layer, connecting these “walled gardens” of financial infrastructure.

XRP has served as a neutral bridge asset for cross-border settlements. Despite not being owned by any government or institution, financial institutions have leveraged it for cross-border transactions, eliminating the need for pre-funding of accounts while also freeing up liquidity.

Although Brad Garlinghouse joined Ripple in 2015, three years after XRP’s launch, Barron suggested that the Ripple CEO may have foreseen the current trend of banks pursuing control through proprietary systems.

In doing so, he likely anticipated that this fragmentation would ultimately increase global demand for a neutral and interoperable asset, such as XRP. Rather than compete against bank-issued digital currencies, Barron is of the view that XRP exists solely to connect them all.