Ripple CEO Brad Garlinghouse, during the “XRP in One Minute” segment at XRP Las Vegas, positioned the XRP Ledger as a specialized payment infrastructure capable of settling transactions in three to five seconds for fractions of just a penny.
He highlighted its processing of more than 4 billion transactions since 2012 and its potential as the foundational layer of the Internet of Value. Garlinghouse emphasized the ledger’s technical architecture, tracing its origins back to earlier 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 framing XRP as a payment infrastructure rather than an investment, Ripple seeks to engage mainstream financial services and expand beyond niche cryptocurrency payments.
Following Garlinghouse’s comments, XRP USD is trading at $1.38, down -3.2% on the day amid a broad market-wide slowdown that has wiped out more than $100 billion from the total cryptocurrency market capitalization.
$XRP/ USDT 4H analysis
XRP has been on an uptrend line since late March, and is currently testing this support after rejection from the $1.48-1.50 resistance zone.
Key levels to watch:
– Support: $1.38 trend line
– Resistance: $1.48 – $1.50🟢The trend line holds ← moving towards $1.48+… pic.twitter.com/ZrdGxcXgYe
— Iqshant Lada | Cryptera (@theCryptera) May 18, 2026
Ripple Architecture and the Internet of Value: How Garlinghouse’s payment-focused design philosophy actually works
The XRP Ledger (XRPL) uses a fault-tolerant Byzantine algorithm and a unique node list to reach consensus every three to five seconds without mining.
This design eliminates the additional energy costs of Bitcoin’s proof of work and the complexity of Ethereum, resulting in instant finality instead of 10 minutes for Bitcoin or 12-15 seconds for Ethereum before compiling.
XRPL can process approximately 1,500 transactions per second, far exceeding Bitcoin’s 7 TPS capacity and Ethereum’s capacity, all while maintaining a minimum transaction fee of around $0.0002. It was designed specifically for payments and liquidity flows, and features financial primitives such as a decentralized exchange and payment channels, rather than a general-purpose platform like Ethereum.
Additionally, Ripple is compatible with ISO 20022 standards, making XRP interoperable with existing banking systems. This focus on specialization is what distinguishes the XRPL architecture from that of Ethereum.
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Payments for Smart Contracts: What Garlinghouse Ripple’s Argument Reveals About the Institutional Status of XRP
The competitive logic in Garlinghouse’s argument highlights Ripple’s focus on XRP’s payment design, which distinguishes it from Ethereum’s programmable settlement and decentralized finance capabilities.
Ripple stresses that enterprise use cases should be categorized and its architecture positioned as more suitable for correspondent banking and cross-border payments.
Ripple’s growing institutional appeal, exemplified by the direct cross-border redemption of US Treasury token bonds on the XRP Ledger involving JP Morgan, MasterCard, and Ondo Finance in May 2026, lends credence to this position. This transaction demonstrated operational feasibility, elevating the architectural case to procurement considerations.
Additionally, a July 2023 ruling by Judge Analisa Torres clarified that sales of XRP on public exchanges do not constitute investment contracts, providing regulatory clarity that Garlinghouse considers essential for institutions.
Combined with Ripple’s acquisition efforts and the approval of the stablecoin RLUSD, this represents a strategic push to position XRP as a compliance-friendly option for institutional adoption.
Infrastructure for the Internet of Value: What a payments-first architecture means for XRP’s role in institutional settlement
Garlinghouse’s perspective highlights the shift in how institutional players 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) uses XRP as a real-time liquidity bridge, eliminating the need for pre-funding. XRP acts as a bridge currency, focusing on transaction throughput rather than price appreciation.
RLUSD, a stablecoin pegged to fiat currencies, supports stable value settlements in transactions, with XRP handling bridge functions and fees, meeting risk-averse compliance frameworks. Ripple’s roadmap includes EVM-compatible hooks and sidechains, expanding capabilities with a focus on payments.
However, the relationship between Ripple’s infrastructure and XRP demand is highly likely. Most transactions on RippleNet use RLUSD and fiat channels, with ODL not yet generating significant demand for XRP. ODL measurement data over the next 12 to 18 months will make this clear.
Key indicators to monitor include the volume of ODL corridors, especially in corridors where eliminating pre-funding provides significant savings. If XRP’s role in institutional workflow expands, 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 continue to be a significant issue.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.
Daniel Francis is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel brings his background in cross-chain analytics to author evidence-based reports and detailed guides. It is certified by the Blockchain Council and is dedicated to providing “information gain” that cuts through the market noise to find blockchain’s real-world utility.
