XRP Will Be the Winner for Financial Rails Due to Centralization: Top CEO

Canary Capital CEO Steven McClurg has made a strong case for the role of XRP Ledger (XRPL) in the future of institutional finance.

He argued that the XRP Ledger’s centralized characteristics are an advantage, not a weakness. Speaking during a recent interview on the Paul Barron Network podcast, McClurg said he believes XRP will ultimately emerge as the leading protocol for financial rails used by institutions.

“XRP will be the winner for financial rails,” McClurg said during the discussion. His comments come as the XRP Ledger expands beyond payments. Ripple, Clearpool, and Cicada Partners are working to build an institutional lending and credit market on the network.

McClurg: Institutions Need Centralization

Notably, one of the biggest criticisms of XRP and the XRP Ledger is that they are less decentralized than networks like Ethereum.

However, McClurg believes this may not be a problem for financial institutions. He says banks and large companies often prefer more centralized systems because they offer greater control, compliance, and predictability.

“When you’re looking at financial rails that institutions use, they want centralization. They need centralization,” he said.

While retail users may prefer highly decentralized networks, institutions have different needs. McClurg believes this gives XRP an advantage as blockchain technology expands into regulated lending, payments, and tokenized assets.

Institutional Lending Could Boost the XRP Ledger

McClurg made these comments as Ripple, Clearpool, and Cicada Partners work to bring institutional lending to the XRP Ledger.

The project will use RLUSD for lending and provide financing to fintech companies, payment firms, and crypto businesses. Clearpool will handle the lending infrastructure, while Cicada will manage credit and borrowers. Ripple will invest alongside other institutions.

Notably, the project is still under development and testing.

Meanwhile, McClurg believes this could have a bigger impact than simply adding another lending product. He says allowing users to earn returns on the XRP Ledger will attract more capital to the network.

“With the XRP Ledger having the ability to produce a yield, it’s going to attract a lot more capital,” he said.

McClurg Sees XRP Above $3.40

When asked where XRP could be in 12 months, McClurg offered a notably bullish forecast.

“It wouldn’t shock me 12 months from now to see XRP above $3.4,” the Canary Capital CEO said.

McClurg was similarly optimistic about the potential size of the institutional lending opportunity developing on the XRP Ledger. Asked whether the market could reach $1 billion or $2 billion, McClurg suggested it could become “probably even more,” while stressing that the market is still in its early stages.

Ultimately, the very feature critics have historically questioned—XRP’s comparatively centralized structure—may be one of its biggest advantages, according to McClurg, if financial institutions prioritize control, compliance, and reliability over full decentralization.

And if more institutional capital flows onto the XRP Ledger, he believes XRP will win the race to build blockchain-based financial rails.