Caitlin Long, CEO of Custodia Bank, recently voiced skepticism about Ripple and the XRP Ledger (XRPL) after Ripple applied for a National Trust Bank charter. She claimed XRPL is not decentralized, its token distribution lacked transparency, and it doesn’t align with modern finance. The ‘XRP Army’ and Ripple executives strongly disagree — here’s why critics say her assessment misses key facts:
1. XRP Never Had an ICO
Long suggested XRP’s distribution was like a “first ICO.” In reality, Ripple never conducted an ICO. When XRPL launched, the entire 100B XRP was created in the genesis ledger and had no market value. Unlike Ethereum’s 2014 ICO, XRP was not sold to raise capital.
2. XRPL Is Not Controlled by Ripple
While some see XRPL as centralized, the network runs on 1,000+ nodes and 100+ independent validators. Anyone can join, operate infrastructure, or fork the code. Ripple doesn’t have exclusive control over consensus decisions.
3. Ethereum Also Raised Funds
Long contrasted Ripple with “trustworthy” Bitcoin and Ethereum, implying they didn’t raise significant early capital. Critics note Ethereum’s launch involved raising BTC from investors — meaning both networks had forms of early funding.
4. RLUSD Stablecoin Strengthens XRPL
Long called Ripple’s RLUSD stablecoin a sign of weak blockchain adoption. Supporters see it differently: RLUSD is issued directly on XRPL, enhancing its role as a decentralized trading and payment platform. Ripple CTO David Schwartz invited open discussion on the stablecoin’s benefits.
5. XRPL Has Grown Steadily for Years
Despite Long’s claim of underperformance, XRPL continues to expand with active developer engagement, growing tokenized assets, and institutional adoption. Supporters highlight its status as one of the earliest decentralized, tokenized platforms in existence.
With these points in mind, Ripple’s defenders argue that XRPL’s track record shows resilience, innovation, and a level of decentralization that challenges Long’s narrative.