Dilip Rao, an ex-global head of infrastructure innovation at Ripple, suggests that XRP is mainly for institutional investors rather than retail.

Rao expressed this view during a question-and-answer session at a Global Islamic Economic Summit held in Dubai. Members of the audience asked Rao to clarify the situation where many people use crypto to make quick gains. They wonder whether this hurts the growth of cryptocurrencies when used for a quick buck.

XRP is For Institutions, Not Retail

Rao explained that while the current market includes many individuals trading XRP speculatively, this is not Ripple’s primary focus. He noted that there are over 200 exchanges globally trading XRP, and some of this activity is superficial.

The ex-Ripple executive clarified that this deviates from the XRP use case the company pursues. Instead, Ripple aims to position XRP as a financial asset that sophisticated institutions utilize for more substantial purposes, such as a bridging mechanism in financial transactions.

Rao acknowledged that speculative trading does create noise in the market, which is not ideal. However, he pointed out that a shift was occurring where in a quarter, most Ripple’s XRP sales were to institutional investors.

This trend indicates a move towards using XRP for significant wholesale financial applications, marking a critical turning point in its adoption and utility.

“As this transition from retail to institutional use continues, XRP will be used more for wholesale financial purposes, which is when we’ll see a significant turning point,” Rao remarked.

XRP Army Reacts

Notably, this summit took place in 2018, although members of the XRP Army recently resurfaced the clip.

A lot has changed in the six years since Rao expressed this sentiment. XRP remains among the top ten most heavily traded crypto assets, with over $3.15 billion in trades over the last 24 hours. It is listed in over 250 markets, demonstrating its enduring popularity.

However, Ripple’s sales of XRP to institutions have since become the subject of litigation with U.S. regulators, with potential fines reaching up to $2 billion, as demanded by the SEC.

Notably, Rao’s 2018 statement that XRP is not meant for retail has continued to spark bullish sentiments among XRP holders. They believe institutional participation in the XRP market will increase the asset’s value, making it a worthwhile investment.

In response to Rao’s statement, an XRP enthusiast exclaimed, “Every single XRP will be like GOLD.”

Previously, Rao was Ripple’s managing director for the APAC and MENA regions, where he successfully led his team in securing banking partnerships for RippleNet (now known as Ripple Payments). As a result, payment services powered by Ripple Solutions that use XRP were launched across multiple corridors in this region.