Ripple CEO Brad Garlinghouse, during an “XRP in a Minute” segment at XRP Las Vegas, positioned the XRP Ledger as a specialized payments infrastructure capable of settling transactions in three to five seconds for mere fractions of a cent.
He highlighted its processing of more than 4 billion transactions since 2012 and its potential as a foundational layer of the Internet of Value. Garlinghouse highlighted the technical architecture of the ledger, tracing its origins to ancient Bitcoin developers, as XRP’s competitive advantage over Ethereum and Bitcoin.
This approach aims to shift the audience for XRP from retail investors to institutional players, such as treasury managers and banks. By presenting XRP as payment infrastructure rather than an investment, Ripple seeks to engage with traditional financial services and expand beyond niche crypto payments.
Following Garlinghouse’s comments, XRP USD is trading at $1.38, down 3.2% on the day, amid a broader market-wide slowdown that has erased more than $100 billion from the total crypto market cap.
$XRP/USDT 4H Analysis
XRP has been following an ascending trendline since late March, currently testing this support after a rejection from the $1.48 to $1.50 resistance zone.
Key levels to watch:
– Support: Trendline $1.38
– Resistance: $1.48 – $1.50🟢 Holds trendline → advances towards $1.48+… pic.twitter.com/ZrdGxcXgYe
—Iqshant Ladha | Cryptera (@theCryptera) May 18, 2026
Ripple Architecture and the Internet of Value: How Garlinghouse’s Payment-Driven Design Philosophy Really Works
The XRP Ledger (XRPL) uses a Byzantine fault-tolerant algorithm and a unique node list to reach consensus every three to five seconds without mining.
This design eliminates the energy overhead of Bitcoin’s proof of work and the complexity of Ethereum, resulting in instant finality rather than the 10 minutes for Bitcoin or the 12-15 seconds for Ethereum pre-rollup.
XRPL can process nearly 1,500 transactions per second, far exceeding the 7 TPS capacity of Bitcoin and Ethereum, while maintaining minimal transaction fees of around $0.0002. It was designed specifically for payments and liquidity flow, with financial primitives such as a decentralized exchange and payment channels, rather than a general purpose platform like Ethereum.
Additionally, Ripple aligns with ISO 20022 standards, making XRP interoperable with existing banking systems. This emphasis on specialization distinguishes XRPL’s architecture from that of Ethereum.
(SOURCE DéfiLlama)
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Payments and Smart Contracts: What Garlinghouse’s Ripple Architectural Argument Reveals About XRP’s Institutional Positioning
The competitive logic of Garlinghouse’s argument highlights Ripple’s focus on XRP’s payment-specific design, which sets it apart from Ethereum’s programmable settlement and DeFi capabilities.
Ripple argues that institutional use cases should be disaggregated, thereby positioning its architecture as better suited to correspondent banking and cross-border payments.
Ripple’s growing institutional traction, exemplified by a live cross-border buyback of US Treasuries tokenized on the XRP Ledger involving JPMorgan, Mastercard and Ondo Finance in May 2026, lends credibility to this position. This transaction demonstrated operational viability, elevating the architectural argument to the status of a procurement consideration.
Additionally, Judge Analisa Torres’ July 2023 ruling clarified that sales of XRP on public exchanges do not constitute investment contracts, providing regulatory clarity that Garlinghouse cites as essential for institutions.
Combined with Ripple’s acquisition efforts and the approval of the RLUSD stablecoin, this represents a strategic push to position XRP as a compliance-friendly option for institutional adoption.
(SOURCE: CoinGecko)
Value Internet Infrastructure: What Payments-Driven Architecture Means for XRP’s Role in Institutional Settlement
Garlinghouse’s view highlights a shift in how institutional actors view cross-border payments. SWIFT’s correspondent banking models rely on pre-funded Nostro and Vostro accounts, tying up capital, while Ripple’s On-Demand Liquidity (ODL) system uses XRP as a real-time liquidity bridge, eliminating the need for pre-funding. XRP functions as a transitional bridge currency, emphasizing transaction throughput rather than price appreciation.
RLUSD, a fiat-anchored stablecoin, supports stable value settlements in transactions, with bridge functions and XRP management fees, meeting risk-averse compliance frameworks. Ripple’s roadmap includes Hooks and EVM-compatible sidechains, expanding capabilities while focusing on payments.
However, the connection between Ripple’s infrastructure and demand for XRP is largely potential. Most transactions on RippleNet use RLUSD and fiat channels, with ODL not yet generating substantial demand for XRP. The next 12-18 months of ODL scaling data will clarify this.
Key indicators to monitor include ODL corridor volume, particularly in corridors where eliminating pre-financing provides significant savings. If XRP’s role in institutional workflows expanded, it would validate Garlinghouse’s claims; If ODL volume remains low with RLUSD and fiat channels dominating, the gap between Ripple’s narrative and XRP’s utility will persist as a significant issue.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult a professional before making any decisions based on this content.
Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. Hailing from crypto since 2017, Daniel leverages his experience in on-chain analytics to write evidence-based reports and in-depth guides. He holds certifications from the Blockchain Council and is dedicated to providing “insight gain” that overcomes market hype to find real utility for blockchain.
