XRP Ledger Seen as Leader in Centralised Financial Infrastructure

Canary Capital CEO Steven McClurg believes that institutions will favor centralisation in financial infrastructure. He argues that XRP Ledger (XRPL) can become a leading foundation for this type of infrastructure due to its centralised character, which he says is an advantage for institutional finance.

Ripple and its partners are working on building an institutional lending market on XRPL, using RLUSD for loans. Clearpool is responsible for the lending infrastructure, while Cicada Partners will manage credit and borrowers. Ripple plans to participate as an investor along with other institutions.

McClurg says that criticism of XRP's centralisation may not be a major issue for institutions, which value control, regulatory compliance, and predictability over full decentralisation.

He also believes that revenue-generating features could increase inflows of funds into the network, and predicts that XRP could top $3.4 within the next 12 months. The institutional lending market on XRPL is expected to exceed $1 billion or $2 billion in value.