XRP: Ripple Could Absorb Legacy Banks, Says Ex-Exec

XRP continues to make headlines as a transformative force in global finance, with former Ripple executive Greg Kidd sharing bold predictions about the company’s future. Speaking at the third annual XRP Las Vegas event, he presented a forward-thinking vision that places Ripple at the heart of a blockchain-driven banking revolution.

In a fireside conversation with journalist Eleanor Terrett, Kidd discussed his early days with Ripple, recalling how, back in 2012, there were only 188 accounts on the XRP Ledger. He compared it to being among the early followers of a meaningful movement. “Even then, the vision was clear,” Kidd recalled. “Money should move at the speed of the internet.”

Transforming Traditional Finance from Within

Currently leading efforts to modernize banking, Kidd is working on bringing traditional institutions on-chain through his involvement with Vast Bank. This federally regulated bank aims to issue FDIC-insured U.S. dollar deposit tokens across blockchain platforms, including the XRP Ledger. The approach represents a powerful move towards digitizing finance while preserving regulatory integrity.

Unlike stablecoins, which are limited by their 1:1 reserve requirement, Kidd’s model uses fractional reserve banking, offering considerable advantages. “We’re eight times more capital efficient than stablecoins,” he explained. “We can pay interest, ensure consumer protections, and enable continuous fund transfers.”

This new financial model, designed with blockchain at its core, aims to replace outdated systems with transparent, efficient, and accessible infrastructure. Kidd envisions a scenario where digital dollars remain within the banking framework while being transferred globally—eliminating expensive and slow remittance processes.

Regulatory Winds Shift in Favor of Innovation

Kidd also addressed changes in the U.S. regulatory landscape, applauding the current administration for eliminating the reputational risk rule that used to discourage banks from serving certain industries. Once excluded sectors such as crypto, cannabis, and adult content — which he collectively refers to as “consensual vices” — now have a clearer path to financial services access.

“If you’re legal and licensed, you should be banked. Period,” Kidd emphasized, aligning with his broader vision that financial inclusion should be a fundamental right. He advocated for the creation of a banking charter focused solely on deposits and payments. In his view, this would provide fintech innovators like Ripple a pathway to operate as legitimate financial entities without the burdens of traditional banking infrastructure.

Ripple’s Role in a Digitized Future

As Ripple continues to grow its influence following key legal victories and international investments, Kidd sees the company evolving into a fully integrated blockchain organization. In the long term, he believes Ripple won’t just compete with traditional institutions but could eventually acquire and modernize them.

He candidly speculated that Ripple may one day buy out legacy banks and financial companies, saying the company could “put them out of their misery” by upgrading their outdated systems to blockchain standards. Kidd sees this as a necessary evolution where slow, inefficient systems are replaced by secure, real-time blockchain solutions.

These comments underscore Ripple’s broader ambition to not only be part of the financial landscape but to fundamentally reshape it. As the company positions XRP as a key part of international transactions and continues rolling out infrastructures like RLUSD, its decentralized financial infrastructure could soon become the industry standard.

Related: Expert Advice: Sell XRP If You’re Confused

Kidd summed up his outlook succinctly: “Payments should be free. Banking should be universal. And blockchain makes that possible. What Ripple and others are doing now is building that future.”