Cryptocurrency enthusiasts and XRP supporters have long speculated about the possibility of a “private XRP ledger” where banks and financial institutions allegedly trade XRP at a much higher price than what’s seen publicly. This theory gained traction after Ripple CTO David Schwartz made comments in 2022 about price alignment across public and private ledgers.
But what did he really mean? Is there any truth to the idea that XRP is secretly more valuable behind closed doors?
Let’s separate fact from fiction. 🧠💡
🧓 Who is David Schwartz?
David Schwartz is the Chief Technology Officer (CTO) at Ripple, and one of the original architects of the XRP Ledger (XRPL). Known as “JoelKatz” online, he is highly respected for his transparency and deep technical knowledge in blockchain and cryptography.
🗣️ What Did David Schwartz Say in 2022?
In 2022, Schwartz stated:
“The price of XRP on the public and private ledgers will be the same. The only reason it’s been different is because of the financial friction.”
This quote was quickly picked up by XRP theorists who believed it confirmed the existence of a higher-priced XRP on a private ledger used by banks or institutions.
However, that’s a misinterpretation of his comments. Here’s why:
🔍 The Facts: Public vs Private Ledger Prices
✅ What Schwartz Meant
- Price parity: Schwartz emphasized that any price discrepancies between public and private environments are temporary and due to market inefficiencies — not due to a secret valuation.
- No alternate XRP price: Schwartz has denied the existence of a shadow market where XRP trades for hundreds or thousands of dollars.
- Ripple’s private ledger: Ripple has indeed worked on a private version of the XRP Ledger, mostly for CBDC development. But this is not tied to speculative prices or special access for banks.
🚫 What He Explicitly Refuted
Schwartz has gone on record multiple times to debunk conspiracies about a “secret XRP price” on private ledgers. In 2023, he said:
“There is no secret market where XRP is traded for hundreds of dollars. That’s simply not how markets work.”
He’s also reminded users that financial markets equalize price discrepancies through arbitrage and competition.
🧠 Why Price Parity Makes Sense Economically
If XRP were being traded at a higher price somewhere else, savvy traders would:
- Buy low on the public market
- Sell high on the private one
- Earn risk-free profits
This is called arbitrage, and it would very quickly bring the prices back into balance.
So, any sustained price gap between public and private ledgers is extremely unlikely and unsustainable in a real market scenario.
🧾 Use Cases for Ripple’s Private Ledger
Ripple has developed private ledger tech for use in:
- Central Bank Digital Currencies (CBDCs)
- Interbank settlements
- Enterprise testing environments
🔐 These are not trading environments with publicly accessible pricing or speculation. They are focused on transaction speed, privacy, and scalability.
💬 Pros and Cons of Private Ledgers
| ✅ Pros | ❌ Cons |
|---|---|
| Improved privacy for institutions | Less transparency |
| Faster, tailored settlement systems | Can fuel conspiracy theories |
| Ideal for CBDCs and compliance | Limited access to public market traders |
📉 Current XRP Price (as of June 1, 2025)
- 💰 XRP Price: $2.17 USD
- 📉 24h Change: -0.91%
- 📊 Intraday High/Low: $2.20 / $2.13
Note: These are public market prices — there is no credible evidence of higher prices elsewhere.
🛑 Beware of Scams and “Secret Price” Claims
Some social media accounts and websites push the narrative that XRP is secretly worth $500 or more — but these are almost always scams or clickbait.
Ripple, David Schwartz, and other credible sources have never endorsed this idea. Be cautious of YouTube videos or tweets claiming “insider knowledge” about the true value of XRP.
📈 The Real Outlook for XRP
Instead of chasing conspiracy theories, investors and enthusiasts should focus on real developments in the XRP ecosystem:
- ✅ ODL (On-Demand Liquidity) adoption
- ✅ Institutional partnerships (e.g., SBI Holdings, Santander)
- ✅ Regulatory clarity in the U.S.
- ✅ CBDC pilot programs built on Ripple tech
🧭 Conclusion: Focus on What’s Real
✅ True: David Schwartz said price parity between public and private ledgers is expected.
❌ False: There’s no secret market where XRP trades at a significantly higher price.
🎯 Bottom Line: Trust the fundamentals, not the fantasy.
