Crypto Can Transfer Value Instantly: Ripple CEO Highlights Limitations of Traditional Reserve Systems
Ripple CEO Brad Garlinghouse has highlighted the limitations of traditional reserve systems in transferring value globally. He pointed to the Dutch central bank's recent gold transfer between March and August 2026, where 86 tonnes of gold were moved without physically changing hands.
The majority of the value was transferred through a series of trades, with 59 tonnes sold in New York and replaced by gold purchased in London. The process relied heavily on location and custody, demonstrating why financial infrastructure still needs faster settlement.
Garlinghouse compared this process to the expansion of digital assets since 2013, when the asset class was valued at $1.5 billion and now has reached around $2.7 trillion. He argued that crypto can transfer value instantly without relying on location-centric processes, making it an 'ideal use case' for fast, secure, and cheap global transfers.
The Ripple CEO also mentioned Germany's four-year gold transfer attempt between 2013 and 2017, where the Bundesbank transferred reserves from Paris and New York. He asked, 'Why does financial value still depend on these location-centric processes?'