Is XRP Ledger Centralized? David Schwartz Challenges Justin Bons' Claim

Ripple's XRP Ledger recently activated the XLS-81 'Permissioned DEX' amendment, introducing controlled trading venues for regulated financial institutions. The amendment enables domain operators to restrict participation to approved users, aligning with compliance requirements. This update is aimed at bridging the gap between traditional finance and blockchain-based settlement systems.

David Schwartz, Ripple's CTO, has emphasized that the XRP Ledger was designed to ensure Ripple could not control or alter transactions, even if pressured by legal or regulatory bodies. He highlighted that the network operates independently. Ripple's design choices aim to protect the ledger's credibility.

The new amendment supports XRP's growing institutional adoption. Ripple expects 2026 to be a pivotal year for the XRP Ledger as major financial institutions begin using on-chain liquidity pools. SBI Holdings is issuing a $64.6 million blockchain-based bond with XRP rewards.

Why Did This Happen?

The XRP Ledger is a decentralized, public blockchain that does not rely on a central authority. Ripple has no control over the network, which is maintained by a distributed group of validators and participants. The ledger's design ensures that no single entity can alter transactions.

The activation of the 'Permissioned DEX' feature reflects a strategic move to accommodate regulated entities that require access control for compliance purposes. This feature retains the decentralized trading mechanics of the XRP Ledger but adds a layer of gatekeeping for institutions that cannot engage with open DeFi environments.

How Did Markets React?

XRP's price has shown mixed signals in response to recent developments. ChatGPT predicted the token could reach $2.50 to $3.50 by late 2026, citing factors such as Ripple's infrastructure expansion and ETF inflows. XRP's volatility remains higher than Bitcoin's, but its regulatory clarity is a key differentiator.

Conversely, Standard Chartered cut its 2026 XRP price target from $8 to $2.80 amid broader macroeconomic concerns and market corrections. The bank maintained its 2030 target at $28, reflecting a long-term positive outlook despite short-term volatility.

What Are Analysts Watching Next?

Ripple's infrastructure expansion and regulatory progress remain key focal points. The company has acquired key firms like Hidden Road, Rail, and GTreasury, building a full-stack banking infrastructure to support institutional use cases. Ripple also received a national trust bank charter from the OCC, giving it access to US banking rails.

The XRP Ledger's ability to handle diverse assets, including stablecoins and tokenized real-world assets, is another area of interest. The ledger is expanding to support NFTs and smart contracts, further broadening its appeal to institutional and retail users.

Analysts are also monitoring the impact of the SEC's February 26 deadline for responding to T. Rowe Price's active crypto ETF, which includes XRP. Institutional adoption and regulatory clarity will likely continue to shape XRP's price trajectory in the near term.