Playing the Long Game: Chris Larsen on Ripple’s Approach to Growth

In this episode of When Shift Happens, I sit down with Chris Larsen, co-founder and Executive Chairman of Ripple, to unpack how he and his team built a successful crypto company trusted by some of the world’s biggest financial institutions—by doing the exact opposite of what most crypto founders set out to do. 

Rather than waging war on the banking system, Larsen focused on partnership, compliance, and trust, proving that blockchain’s future doesn’t have to be antagonistic; it can be collaborative, even boring, in all the right ways.

From solving for anger in his personal story to solving for enterprise-grade compliance in crypto, Larsen shares a deeply human and strategic look at what it takes to build a lasting company in an industry addicted to chaos.

Enterprise, Not Anarchy

"We decided we wanted to be an enterprise-focused company," Larsen says. "My last two companies were all consumer companies. What I like about enterprise is it's actually the polar opposite."

Rather than rebuild the entire financial system from scratch, Ripple aimed to upgrade it. By offering fast, compliant cross-border payments to financial institutions, they positioned themselves to enhance, not disrupt, the status quo.

The Unspoken Burden of Compliance

Ripple's approach wasn't sexy. It was slow, methodical, and relationship-driven. "You can't break things in finance," Larsen emphasises. "You can't just build that thing and worry about New York's Department of Financial Services later."

The early rhetoric in crypto about dismantling central banks didn’t help. "The industry did a lot of damage in those early years."

Ripple, instead, focused on building trust. "We've spent a ton of time... on licensing, compliance, and relationships with regulators."

Success Fueled by Anger

Larsen’s personal story adds depth to his professional choices. "It was anger that motivated me in the early days. Anger at the way my dad was treated... he was a super hardworking guy, but never seemed to get ahead."

That frustration fuelled his drive, but only up to a point. "Eventually, you have to recognise it. You can't let anger drive the car. Let it sit in the back seat, be grateful for what it got you, but it can’t be in control anymore."

Stepping Back for Family

Larsen also opens up about stepping back from day-to-day operations. "I stepped down from being CEO... Brad was the person who could take us from there." Why? "I have younger kids, and I want to hang on to every single moment with them."

He speaks candidly about the productivity sweet spot. "People are sort of most productive between 35 and their 50s. You have to recognise when you reach the end of the line."

Choosing the Zero to One Chaos

Reflecting on his strengths, Larsen says, "I like the completely uncertain part, almost the reality suspension." He compares it to being out in the wilderness, hacking a new trail. But once things settle and product-market fit is achieved, he admits, "That's a discipline play. And if it's boring, you're not going to be good at it."

Navigating San Francisco’s Decline

Larsen doesn’t shy away from social commentary either. He talks about homelessness, drug addiction, and mental illness in California, and what he sees as a failure of performative freedom.

"That person is going to die," he says about the drug epidemic. "And you're supposed to just step over them and not force them to get help? That is going to end."

He believes California went too far in the name of compassion and now needs to reintroduce structure and accountability. "Tough love. That's what we need."

Crypto's True Challenge: Longevity

Larsen makes a compelling case for conservatism in crypto. "The average fiat currency lasts 27 years. In crypto, it's more like 27 days."

He compares successful currencies to Switzerland and Singapore. "There's a conservatism built into both... currencies should be very stable and not changing a lot."

He criticises chaotic projects: "Let's burn half of this... do an airdrop there... It's the opposite of what any successful currency should aim for." He acknowledges that part of that pressure comes from VCs who want to see rapid growth, but the recklessness that accompanies it is simply not sustainable. 

He also compares them to community-funded projects. "Some of those did better because they weren't pushed to offer competitive rates like the reckless competitors."

Thinking Generationally

When asked if he ever felt Ripple had "made it," Larsen is blunt about that being a grave for startups. "You never want to have the 'we have arrived' moment."

Instead, he's thinking about the long game. "How do you become a great American company that survives to the second, third, fourth generation?"

XRP: A Simple Idea That Works

XRP, as the first cryptocurrency after Bitcoin, was originally conceived as a better version of the latter, aiming to be a faster, more energy-efficient cryptocurrency. But its purpose evolved. Today, Larsen describes it as "another cryptocurrency" and "a new financial product... a lubricant to the world economy."

He sees Crypto’s simplicity and neutrality as core strengths. "It doesn't belong to any country... it's low-level and simple, like internet protocol," he says. He contrasts it with fiat currencies, which carry national baggage, capital controls, inflation policies, and political instability.

"The notion that it's a store of value is revolutionary enough," he adds. "In a world where inflation and policy manipulation are constant threats, a non-inflationary, open-source asset is already a big deal."

Final Thoughts

Ripple’s story is one of patience, regulation, and calculated trust-building. Chris Larsen’s journey reminds us that sometimes the most radical act in crypto isn’t disruption. It’s discipline.

"If you're not standing in the road, you won't get hit by the lucky truck," he says. 

And Ripple? It's been standing in the road for over a decade, and still hasn’t flinched.

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