21Shares, a major crypto asset manager, has addressed a longstanding criticism of XRP by rejecting assertions that Ripple controls the XRP Ledger (XRPL). The firm emphasized that Ripple operates just one validator out of approximately 35 listed on XRPL’s default trusted validator set.
Validator independence highlighted
Protocol changes to the XRP Ledger require backing from more than 80% of trusted validators before being adopted, according to 21Shares. With this distributed validator system, Ripple cannot unilaterally alter XRPL rules or reverse transactions.
The XRPL network depends on independent validators that must reach broad consensus for amendments to become active. Recent debates regarding proposed lending features on XRPL demonstrated this point, as none of the amendments were able to secure the necessary validator support after months of discussion.
Ripple does not control XRPL rules or the approval of protocol changes, as amendments must gain support from over 80% of trusted validators on the network.
This governance process undermines the simplicity of claims that Ripple directly controls the ledger and show that decision-making is distributed across the network’s validators.
Mini dictionary: 21Shares is a Switzerland-based crypto asset management firm that offers exchange-traded products (ETPs) tracking various digital assets.
Institutional products and interests
21Shares also pointed to recent data regarding its XRP investment products. The firm’s European AXRP exchange-traded product managed around $341.5 million, while its US-based TOXR ETF held about $157.2 million in assets. Combined, these products represent nearly $499 million invested in XRP through 21Shares offerings.
| Product | Region | Assets (approximate) |
|---|---|---|
| AXRP ETP | Europe | $341.5 million |
| TOXR ETF | United States | $157.2 million |
| Total | – | $498.7 million |
While these figures underscore 21Shares’ significant commercial stake in the perception and regulation of XRP among institutional investors, the firm maintains that this does not invalidate its arguments about XRPL governance.
Ripple’s influence persists
Despite Ripple’s lack of unilateral technical control over the ledger, the company still holds large reserves of XRP in escrow and maintains substantial influence over the ecosystem’s development.
Ripple, based in San Francisco, is a technology company that develops payment solutions and remains one of the most visible entities in the XRP ecosystem.
Ripple cannot dictate the consensus process on the XRPL due to the network’s validator structure, yet it continues to play a significant economic and strategic role in the project’s growth.
The distinction between technical governance and broader influence remains central to continued debates within the XRP community about the asset’s degree of centralization.
