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‘Ripple (XRP) Lawsuit Was All Smoke and Mirrors,’ Pundit Explains Why

‘Ripple (XRP) Lawsuit Was All Smoke and Mirrors,’ Pundit Explains Why

  • Pundit claims Ripple’s SEC battle masked global expansion strategy.
  • Alleged ties link Ripple to central banks and U.S. interests.
  • Speculation grows over Ripple’s role in government-backed blockchain plans.

The XRP community was stirred into debate after X user Pumpius claimed that Ripple’s legal battle with the U.S. Securities and Exchange Commission was never a genuine conflict. According to his posts, the “David vs Goliath” narrative acted as a deliberate distraction while Ripple worked to build government-aligned blockchain infrastructure.


Pumpius alleged that during the period of intense media coverage, Ripple quietly signed more than 1,700 contracts and non-disclosure agreements with global financial institutions. He suggested that this expansion took place while public attention remained focused on the court case.


Since its inception, Ripple’s technology was reportedly designed for institutions rather than casual retailers. Its low costs, real-time settlement, and early compliance with ISO 20022 meant that it was well placed to interface with most central banks and payment systems.


The commentator claimed that those characteristics are more suitable for an infrastructure that replaces SWIFT than a small fintech competitor. They proposed that this shows a long-term strategy to integrate the Ripple network into the top tiers of the financial system.



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Global Partnerships and Strategic Expansion

The claims included reported links to Federal Reserve pilot programs and partnerships with central banks in Bhutan, Palau, and Montenegro. Ripple is also reported to have key payment corridors in the Middle East and Asia.


U.S. defense-related banks, including BNY Mellon, were said to be another indicator of adherence to governmental interests. The commentator affirmed that such relations are not typical of standalone fintech businesses.


They said that the SEC case provided perfect cover. As people saw Ripple as under attack, the company moved to other countries, allegedly to avoid the restrictions in the United States.


Domestic Readiness and Broader Scope

Ripple’s RLUSD stablecoin pilot was identified as a cornerstone of the alleged strategy. Institutionally custodial, fully U.S. compliant, and directly integrated with the XRP Ledger, RLUSD will soon become available.


Under the proposed system, RLUSD would be used as the domestic bridge asset, and XRP would be used to clear cross-border settlements. This would establish a smooth connection between the domestic and global systems.


The commentator also referred to the so-called “DNA Protocol,” a project associated with genomic data tokenization on the XRP Ledger. They argued that this could extend Ripple’s reach from finance into identity-linked data management.


Ripple’s legal battle, a smokescreen for global expansion, has drawn wide attention among XRP supporters. It is important to note that even though this speculation has spread quickly, there are no public facts confirming it, and neither Ripple, the SEC, nor any other stakeholder has commented on the matter.


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