Ripple CTO David Schwartz recently explained why Defi and Tradfi are not in conflict and why real-world assets, on-chain credits and decentralized exchanges are creating the financial products they actually want.
Ripplex’s official X account shared insights from Ripple CTO who spoke in the first episode of the Onchain Economy series.
Can institutional recruitment and decentralization work together?
In the first episode of the Onchain Economy series, @Joelkatz says yes and offers that neutrality is important: https://t.co/bucofy7zyl
He explains how tokenized assets and on-chain credits can bridge the gap between…pic.twitter.com/zwbg8lpvau
– Ripplex (@ripplexdev) September 25, 2025
Schwartz emphasized that institutional obligations are not contradictory. This is like technology is coming for finance. With or without blockchain, Ripple CTO added that this should happen. He added that companies like Amazon and Uber need more financial services than current systems can provide them, and blockchain technology is in the right place at the right time.
This week, Ripple unveiled the next stage of its institutional obligations in its XRP ledger. This is expected to be released later this year with XRPL version 3.0.0.
Ripple CTO makes crypto market forecasts
Ripple CTO David Schwartz predicts that Defi will eat Tradfi’s lunch in the coming years.
According to Schwartz, the big challenge is that blockchain space must create the services people want from the financial system.
Schwartz predicts that Defi Space, supported by institutional adoption, will provide benefits such as symbolic real-world assets, tokenized loans and real estate portfolios.
Large scale expansion into the crypto space
Schwartz, in his opinion, is concerned with layer-1 blockchain for decentralization and neutrality, so there is no tension between institutional adoption and decentralization.
Schwartz believes blockchain neutrality is a selling point that ultimately leads to a massive expansion of the crypto space.
