Ripple CEO: We Can't Be Profitable Without Selling XRP

·

In a candid admission that has sparked renewed debate in the cryptocurrency community, Ripple CEO Brad Garlinghouse revealed that the company relies on selling XRP to maintain profitability. This statement comes amid the March 1, 2025, unlock of 1 billion XRP—worth approximately $226 million—from Ripple’s escrow accounts, reigniting concerns about token distribution, centralization, and long-term sustainability.

While Ripple has paused its programmatic sales model, opting instead for over-the-counter (OTC) transactions with strategic partners, the core business reality remains unchanged: XRP sales are a critical revenue stream.

👉 Discover how major crypto platforms generate sustainable revenue—without relying on token dumps.

Ripple’s Revenue Model: Built on XRP Sales?

Brad Garlinghouse made headlines when he told the Financial Times that without selling XRP, Ripple would not be profitable or cash-flow positive. He stated:

“XRP sales are one of our sources of income. Remove system revenue, and our profitability goes down. Remove XRP sales, and our profitability also goes down. I don’t think you can separate the two.”

He further clarified:

“We would not be profitable or cash flow positive without selling XRP. I think I’ve said that before. We have now.”

This confirmation aligns with long-standing skepticism from analysts and investors who have questioned the sustainability of a business model where a significant portion of revenue comes from selling its own native cryptocurrency.

Luke Martin, a well-known crypto analyst, echoed this sentiment on social media:

“Dumping $XRP on you is how Ripple stays alive.”

The transparency, while refreshing, raises important questions about decentralization, market dynamics, and investor trust.

Escrow and Centralization Concerns

Since its inception, Ripple has faced criticism for maintaining control over a large portion of XRP supply—initially holding 55% of the total 100 billion tokens. To address concerns about sudden market floods, Ripple implemented an escrow system in 2017, locking up billions of XRP in monthly release cycles.

Each month, 1 billion XRP are released from escrow, with any unused portion returned to new escrow contracts. While this mechanism provides predictability, it doesn’t eliminate the underlying issue: Ripple still controls the timing and volume of XRP entering the market.

Although the company claims to have halted programmatic sales as of Q4 2019, focusing instead on OTC deals with strategic partners who contribute to XRP adoption and liquidity, there is limited public data on who these partners are or how much XRP is being sold.

This lack of transparency fuels speculation and market uncertainty—especially when large volumes are unlocked.

RippleNet: Growth Through Strategic Partnerships

Despite controversy around token sales, Ripple has made tangible progress in expanding RippleNet, its blockchain-based global payments network. As of early 2025, RippleNet counts hundreds of financial institutions across more than 70 countries among its users.

One recent addition is the National Bank of Fujairah, a major UAE-based lender that joined RippleNet to enhance cross-border transaction efficiency. This partnership underscores Ripple’s ongoing push to position itself as a viable alternative to traditional systems like SWIFT.

Ripple’s strategy isn’t just technological—it’s financial. The company invests heavily to incentivize adoption. For example:

These moves demonstrate a dual-pronged approach: build the infrastructure and fund its adoption.

👉 See how leading fintech innovators are funding real-world blockchain integration today.

Future Roadmap: Could Ripple Launch a Stablecoin?

David Schwartz, Ripple’s Chief Technology Officer, recently hinted at an ambitious evolution for the XRP Ledger (XRPL). In interviews and public forums, he discussed plans to support asset-backed tokens, including stablecoins, directly on the XRPL.

This shift could significantly expand use cases beyond payments, enabling:

Such developments would align XRPL more closely with Ethereum and other smart contract platforms—while leveraging its strengths in speed and low cost.

However, regulatory scrutiny remains a key hurdle. With stablecoins under increasing global oversight, any move by Ripple into this space would require careful navigation.

Core Keywords & SEO Integration

To meet search intent and improve discoverability, here are the core keywords naturally integrated throughout this article:

These terms reflect high-volume queries related to Ripple’s business model, leadership statements, and technological roadmap.

Frequently Asked Questions (FAQ)

Why does Ripple need to sell XRP to be profitable?

Ripple uses XRP sales as a direct revenue source to fund operations, partnerships, and technology development. While it earns some income from RippleNet transaction fees and services, XRP sales remain essential for maintaining positive cash flow.

Has Ripple stopped selling XRP programmatically?

Yes. Since Q4 2019, Ripple has paused automated monthly sales from escrow. Instead, it conducts selective OTC sales with strategic partners focused on increasing real-world usage and liquidity of XRP.

How much XRP does Ripple still control?

Approximately 45 billion XRP were originally allocated to Ripple. After years of releases and sales, the company continues to hold a significant reserve—though exact figures vary monthly based on escrow returns and usage.

Is selling XRP bad for investors?

It can create downward price pressure if large volumes hit exchanges without offsetting demand. However, Ripple argues that strategic sales fund ecosystem growth, which ultimately supports long-term value.

Could XRP become deflationary?

Not currently. Unlike some cryptocurrencies with fixed burn mechanisms, XRP has no built-in deflationary model. However, proposals for using transaction fees or bridging mechanisms to reduce supply have been discussed in developer communities.

What is the future of the XRP Ledger?

The XRP Ledger is evolving beyond payments. With potential support for stablecoins, NFTs, and decentralized finance (DeFi) applications, it aims to become a multi-functional blockchain platform while retaining its core advantages: speed, scalability, and low cost.

👉 Explore next-generation blockchain platforms offering both utility and sustainability.

Final Thoughts

Ripple’s admission that it depends on XRP sales for profitability may seem controversial—but it also reflects a level of honesty rarely seen in corporate crypto narratives. While centralization concerns persist and market reactions remain sensitive to escrow unlocks, Ripple continues to build real-world utility through RippleNet and strategic investments.

The path forward likely involves balancing transparency with growth—scaling adoption without undermining trust. Whether through new financial products like stablecoins or deeper integration with global banking networks, Ripple’s success will depend not just on how many XRP it sells—but on how effectively it turns those sales into lasting value.