Ripple CEO dispels rumors: how XRP price formation truly works in global markets

Over the years, questions have circulated around XRP regarding fair pricing and the possibility of internal control. Critics have claimed manipulation, advantages for select partners, and closed agreements. However, the recent interview with Brad Garlinghouse, CEO of Ripple, for CNN provides an official clarification regarding these long-standing suspicions. Crypto commentator John Squire highlighted key points from the conversation, in which the Ripple CEO clearly explains the mechanism of XRP trading at the institutional level and the fundamentals of its price formation.

How XRP is Truly Purchased: Market Rates Without Privileges

When asked whether Ripple sets special prices for its partners, Garlinghouse gave a clear answer. Institutional investors, including payment services, acquire XRP at current market quotes, not through internal arrangements.

The CEO provided a specific example with MoneyGram: “When a payment service transfers dollars to Mexican pesos, it buys XRP at the current market rate. There are no hidden discounts or special terms.” Such practice contradicts years-long claims that Ripple quietly distributes tokens at discounted prices to selected players. Instead, all institutions using XRP for payment operations face the same factors as ordinary traders: volatility, liquidity, and actual demand.

Lockups as a Stabilization Tool, Not Price Manipulation

Garlinghouse also addressed the topic of restrictions on reselling XRP (lockups), which is often interpreted as proof of control. He acknowledged that large purchases may have volume and schedule restrictions on subsequent token sales to the market.

“In some cases, when we work with institutional clients purchasing tens of millions of dollars worth of XRP, we may set conditions on how quickly they can sell,” he explained. However, the purpose of such requirements is to prevent sudden dumps that could destabilize the market, not to control prices. These restrictions are usually tied to overall market capitalization, creating a structure aimed at maintaining liquidity.

This resembles practices in traditional finance, where large block trades are often accompanied by contractual restrictions. Any discount calculator on the financial market shows that stability often has value, and institutions are willing to accept resale conditions rather than face sudden volatility spikes.

Clear Structure Without Ambiguity

When the interlocutor asked for clarification about the connection between lockups and price measures, the Ripple CEO confirmed that such arrangements exist but are transparent and standardized. “Yes, that’s correct,” he said, “but these processes are necessarily accompanied by strict requirements for conversion.” Importantly, this is not some secret deal giving internal participants advantages in price setting.

Market Driven by Demand and Actual Utility

Garlinghouse’s overall stance was categorical: XRP is traded on transparent, open markets where price is determined by objective factors — demand, supply, and real usage. Since regulators began considering XRP as a digital commodity, its value increasingly depends on practical implementation in payment systems, liquidity efficiency, and global demand for transmissions.

In such a scale and depth of the market, long-term manipulation would be impossible to control without obvious traces. No single entity — not even Ripple itself — can influence the direction of prices unilaterally in such a widespread ecosystem.

This Is Why Distrust Has Accumulated; Now There Is an Official Explanation

The interview reveals what has been missing for a long time: an official, straightforward response to accusations. XRP’s price formation is not happening behind closed doors but on global exchanges in real time. Market participants respond to actual utility, adoption levels, and liquidity dynamics. As evidenced by the fact that these clarifications are made public, the XRP market operates more transparently than many skeptics are willing to admit.