Claims that Ripple directly controls XRP and the blockchain based on it, the XRP Ledger (XRPL), are not true, a rebuttal has emerged. Global asset manager 21Shares, which runs XRP investment products, drew a line under existing perceptions about Ripple’s control of the network by citing the XRP Ledger’s validator structure.

On Sept. 8 (local time), blockchain media outlet U.Today reported that 21Shares recently pointed to the “direct control by Ripple” narrative as one of the leading misconceptions surrounding XRP in a social media post.

21Shares assessed XRP as “possibly the most misunderstood 13-year-old asset in the crypto industry.” It presented the validator structure that verifies XRP Ledger transactions as its key basis.

The default trusted validator list on the XRP Ledger currently includes about 35 validators, it said. Of those, only 1 validator is operated directly by Ripple. More than 150 validators are known to participate across the network.

The relationship between Ripple and XRP has long fuelled a debate over centralisation. Ripple was deeply involved in the creation and early development of the XRP Ledger and is still seen as the most influential company in the XRP ecosystem. In particular, Ripple’s participation in developing XRP Ledger software has led to claims that it controls the XRP Ledger.

However, 21Shares stressed that influence over software development must be distinguished from direct control over blockchain transaction validation. The XRP Ledger also defines itself as a decentralised public blockchain in its official documents and explains that Ripple does not own or control the network.

Protocol changes to the XRP Ledger also require agreement from many validators. Generally, at least 80 percent of validators must support a proposed change for it to be applied. 21Shares said the structure does not allow a specific company to approve transactions on its own or change network rules.

Ripple has also steadily reduced the share of validators it operates to decentralise the network. Ripple said it has pursued a strategy to strengthen decentralisation of the XRP Ledger since 2017, and it says it currently operates 1 validator directly.

Still, the claim does not mean Ripple’s influence over the XRP ecosystem has effectively disappeared. Ripple remains one of the most important companies in the ecosystem centred on the XRP Ledger and XRP. In particular, billions of XRP held in Ripple’s escrow accounts are assessed as an important market variable.

21Shares, which made the comments, directly runs investment products linked to XRP. In Europe, it launched the “21Shares XRP ETP (AXRP)” in April 2019, and it is traded on SIX Swiss Exchange, Deutsche Boerse Xetra and Euronext Amsterdam and Paris. In the U.S. market, it launched the “21Shares XRP ETF (TOXR)” in December last year. The product is managed to track the FTSE XRP index after fees.

21Shares also presented an early-year outlook for XRP’s price. In its base scenario, it forecast XRP could rise to $2.45, and it set a bull-case scenario at $2.69 and a bear-case scenario at $1.60. CoinGecko puts the current XRP price at about $1.42.

The 21Shares comments are seen as resetting the terms of the long-running centralisation debate around XRP, rather than fully resolving it. The fact that Ripple exerts huge influence in the XRP ecosystem and whether it directly controls transaction validation on the XRP Ledger are separate issues, it said.