Marcus Treacher, senior vice president of customer success at Ripple, addressed concerns of XRP centralization stating that “XRP is not centralized. It’s a decentralized, open-source digital asset, and the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — meaning no one party can control it, not even Ripple.”

Crypto journalist Laura Shin said is a tweet that “Ripple is highly centralized & XRP is more akin to a PayPal account than a trustless system like bitcoin”

Marcus Explains Ripple’s Growth Strategy

Marcus told Finance Magnates that Ripple’s growth has much to do with the company’s concentration of tapping into the market for international transaction infrastructure: “a large part of our success has been to not lose focus on solving a specific problem around cross border payments,” he said–particularly, the global remittance market.

Additionally, “Ripple is a stakeholder of XRP thus is an interested party in its success,” Treacher continued. Therefore, in his view, “it wouldn’t be logical as a business to disrupt the XRP Ledger or XRP.”

Treacher also pointed to the fact that “the XRP held by Ripple is locked in cryptographically-secure escrow accounts in which one billion XRP is released to Ripple each month. This provides an upper limit on the amount of new XRP that can be brought into circulation, and any additional XRP leftover each month is placed into a new escrow”.

It may be that 2020 has not been the best year so far for most people, with the rise of the coronavirus and the resulting economic crisis putting the entire global financial system at risk.

Because of Ripple’s status as a company dealing in blockchain, which is still largely considered a frontier technology, the ranking was considered to be particularly significant.

The year wasn’t all bad for everyone though, as Forbes named the settlements system and remittance giant Ripple as the second-largest fintech firm in the US, just behind Stripe (valued at $35 billion), a San Francisco-based payment processing firm. Coinbase (valued at $8.1bn) came third.

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