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David Schwartz sees retail DeFi exploding by 2027, and the XRP Ledger has the bones to compete, but a handful of missing validator votes stand between ambition and reality.
The Crypto Desk desk. Editor: Sam Daodu.
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Ripple’s former CTO, David Schwartz, recently shared his thoughts in an interview about the potential growth of retail decentralized finance (DeFi) by 2027. This raises an important question: can the XRP Ledger capitalize on this opportunity?
Schwartz highlights factors such as the rise of tokenization, easing regulatory hurdles, and the emergence of AI agents that could help manage personal finances. DeFi, or decentralized finance, refers to blockchain applications that let users trade, lend, and borrow cryptocurrencies without a traditional bank.
In related news, Ripple launched an official X account for XRP (CRYPTO: XRP),@XRP. The XRP Ledger Foundation, a nonprofit organization that supports the ledger’s development, runs this account in collaboration.
Despite these advancements,XRP has declinedin value. As of October 20, 2026, XRP is trading at $1.29, down 4.2% over the past week and 29.6% year-to-date. This raises the question: can XRP Ledger DeFi attract retail interest, and will XRP holders benefit?
Schwartz’s Forecast and the @XRP Account Carry No Product
While Schwartz’s predictions are intriguing, they’re just that—predictions. Ripple has not tied any specific product, partnership, or launch date to these expectations. As a former chief technology officer, Schwartz offers a unique perspective on the XRP Ledger, but his insights don’t guarantee immediate results.
Similarly, the @XRP account serves primarily as a communication channel, providing a unified voice for XRP from Ripple and the foundation. However, it does not generate revenue or introduce new partnerships.
Ripple’s primary revenuer payment network forbanks and financial firms, manages a custody business, and offers a dollar-backed stablecoin namedRLUSD. Because Ripple is a private entity, it does not publicly disclose its revenue breakdown
The XRP Ledger Has DeFi Basics but No Live Lending
The XRP Ledger does have some foundation for DeFi, including a built-in exchange for trading tokens since its inception and support for automated market maker (AMM) pools. An AMM lets traders trade tokens against a pool of assets, while liquidity providers earn fees in return.
However,lending, a key component of DeFi, is still not operational on the XRP Ledger. This function relies on amendments—code changes approved by validators, who are independent servers that confirm transactions.
Two crucial amendments are currently in progress: the LendingProtocol amendment, which has 17 validator votes but needs 25, and the SingleAssetVault amendment, which has 19 votes. Ripple has voted in favor of both, but additional support from independent validators is necessary for activation.
On a positive note, developers are actively working on improvements. A recent amendment named fixCleanup3_4_0, which includes fixes for vault deposits, withdrawals, and the Lending Protocol, has received 29 votes and is set to activate on October 23. However, it won’t launch lending features yet.
Ethereum and Solana Already Offer Retail Crypto Credit
Meanwhile, other blockchain platforms likeEthereum(CRYPTO: ETH) andSolana(CRYPTO: SOL) have already established retail crypto credit markets. For instance, Abra CEO Bill Barhydt mentioned on The Pomp Podcast that borrowing againstBitcoin(CRYPTO: BTC) in DeFi typically costs around 4.5%. This highlights that retail borrowers currently haveneeded to enable lending functionality
Additionally, Schwartz did not specify any particular asset that would be settled within the XRP Ledger’s lending framework. Each vault on the XRP Ledger holds a single asset, so if lenders use RLUSD or tokenized Treasuries, XRP may primarily pay network fees rather than directly facilitating loans.
Tokenization involves converting physical or traditional assets—like bonds or funds—into digital tokens that can be traded on a blockchain. Investor Jordi Visser highlighted on the same podcast that “tokenization unleashes dormant assets” that “will be used as collateral.” However, his argument applies to any blockchain or stablecoin, not just XRP.
Will the XRP Ledger Benefit From Retail DeFi?
In conclusion, Ripple is more likely to benefit from the retail DeFi market before XRP does. Increased retail DeFi activity could attract more users to RLUSD and draw developers to the XRP Ledger, bolstering Ripple’s stablecoin business even if XRP continues to decline in value. ForXRP to see real gains, it needs functioning lending, active vaults, and collateral use—all of which depend on the necessary developments and votes.
The key indicator to watch is the vote count for the LendingProtocol amendment. If it gains traction, it could signal a step closer to realizing these DeFi ambitions on the XRP Ledger.
Contact [email protected] for any questions or corrections.
Sam Daodu is a crypto analyst who’s spent nearly a decade making blockchain understandable—no easy task when most whitepapers read like fever dreams. He writes for 24/7 Wall St., covering Bitcoin, altcoins, and crypto market analysis for investors. Before crypto, he was a tech writer (back when explaining “the cloud” was peak innovation). Since 2018, he’s written for CoinTelegraph, Yahoo Finance, The Block, Cryptonews, Zypto, Rain, and more—basically anywhere people want crypto news without the headache. Sam runs MacLabs Marketing, a content agency for crypto brands tired of sounding like AI wrote their website. He also publishes free crypto education on his site for Web3 enthusiasts who think “gas fees” is a typo. When he’s not writing or staring at charts, Sam’s either: – Watching anime (currently convinced One Piece has better tokenomics than most altcoins) – At the gym sculpting himself into a Greek god – Listening to the music your mum warned you only bad boys listen to Connect: LinkedIn | Email | MacLabs Marketing
Source: 247wallst.com