Ripple CEO Brad Garlinghouse has cited an 86-tonne reallocation of Dutch gold reserves to argue that crypto networks can move value across borders faster than physical reserve systems.
Summary
- DNB sold about 59 tonnes of gold in New York and replaced it in London.
- More than 27 tonnes were moved physically between North America, Zeist, and London.
- Garlinghouse said crypto reduces the dependence of value transfers on asset location.
- DNB kept its total gold reserves unchanged while increasing the share stored in London.
Dutch gold transfer changed where reserves were held
De Nederlandsche Bank said it reallocated about 86 tonnes of gold between March and August 2026 to make its reserves easier to trade and strengthen its preparations for a possible crisis.
Most of the operation did not involve shipping the same bars across the Atlantic. According to the central bank’s announcement, DNB sold approximately 59 tonnes in New York before buying the same amount of market-standard gold in London.
DNB also used physical transfers for part of the operation. More than 27 tonnes were moved from the United States and Canada to its cash center in Zeist, while a similar amount of market-standard gold was transported from Zeist to London.
By combining sales, purchases, and physical transport, the central bank said it reduced the operational risks associated with relying on one transfer method. The approach also allowed DNB to avoid remelting bars that did not meet the standards required for direct trading in London.
No gold was added to or removed from the Dutch reserve during the process. Instead, the operation changed where the metal was held and improved the quality of the portion available for international transactions.
Following the reallocation, the Bank of England holds 32.1% of the Netherlands’ gold, up from 18.1%. DNB’s Zeist facility retains 30.8%, while New York and Ottawa each account for 18.5%.
Before the move, New York held 31.3%, and Ottawa held 19.7% of the reserve. DNB said London offers better access to the international gold market, particularly when financial conditions become volatile.
Brad Garlinghouse says crypto removes location barriers
Responding to the operation in an X post, Garlinghouse focused on how DNB transferred much of the reserve’s economic value without moving the same bars from New York to London.
The Ripple executive described global value transfer as an “ideal use case” for crypto, arguing that blockchain networks can settle transactions quickly and securely without requiring an asset to change physical locations. His comparison centered on the custody, transport, and trading arrangements needed when central banks reposition bullion.
“Why does financial value still depend on these location-centric processes?” Garlinghouse asked.
His argument did not mean that the Dutch central bank had used cryptocurrency or blockchain technology during the operation. DNB relied on established bullion markets, central-bank custody arrangements, and physical vault infrastructure to reorganize the reserve.
Garlinghouse instead used the transaction to contrast two different forms of settlement. Gold requires recognized vaults, approved bars, secure transport, and access to liquid trading centers, while a crypto asset can move between blockchain addresses without being transported as a physical object.
According to Garlinghouse, the total value of the crypto market has grown from approximately $1.5 billion in 2013 to around $2.7 trillion. He presented that increase as evidence that blockchain-based assets and transfer networks have developed into a large financial market within little more than a decade.
Ripple has built much of its business around institutional payments and settlement. In July, crypto.news reported on Ripple’s European expansion, noting that Ripple Payments had processed more than $100 billion across over 60 markets.
A separate June report examined how Ripple has moved from presenting itself as a direct replacement for bank infrastructure toward working alongside SWIFT. Banks can retain established messaging systems while using blockchain-based products for selected settlement and tokenization functions.
Germany’s gold transfer shows the physical burden
Garlinghouse also referred to Germany’s earlier repatriation of 674 tonnes of gold from Paris and New York to Frankfurt. The Bundesbank began the operation in 2013 and completed it in 2017, three years before its original deadline.
The total consisted of 374 tonnes from Paris and 300 tonnes from New York. Germany moved the metal in stages, bringing 37 tonnes to Frankfurt in 2013, 120 tonnes in 2014, 210 tonnes in 2015, 216 tonnes in 2016, and the final 91 tonnes in 2017.
Bundesbank specialists checked the authenticity, purity, and weight of the bars when they arrived in Frankfurt. After the program ended, Germany held 50.6% of its gold domestically, while the Federal Reserve Bank of New York stored 36.6% and the Bank of England held 12.8%.
The Bundesbank said its storage plan served two functions: maintaining confidence by keeping half of the reserve in Germany and preserving access to trading centers where gold could be exchanged for foreign currency quickly.
For U.S. readers, both the German and Dutch cases show the continuing role of New York in the international bullion system. Foreign central banks store gold at the Federal Reserve Bank of New York because the location supports custody and transactions with other official institutions, although moving or reallocating bullion still requires operational coordination.
Gold infrastructure remains central to reserve policy
Despite Garlinghouse’s comparison, DNB said the gold reallocation was designed to improve the resilience of its existing reserve system rather than replace bullion with a digital asset.
DNB Governor Olaf Sleijpen said the central bank does not expect that it will have to use its gold during a crisis. Even so, he said DNB must remain prepared for severe conditions and ensure that part of the reserve can be traded when needed.
The central bank also said experience with both physical transfers and market-based reallocations would be useful if another move became necessary. During a future disruption, transport constraints or trading conditions could prevent DNB from using one of the two methods.
The gold operation arrives as regulated institutions continue adding digital-asset services without abandoning existing financial infrastructure. In July, Germany’s DZ Bank began rolling out crypto trading through participating cooperative banks, giving retail customers access through their existing banking relationships.
The service supports Bitcoin, Ethereum, Litecoin, and Cardano, with Boerse Stuttgart Digital handling custody. Participation remains optional for individual cooperative banks, although hundreds of institutions were expected to introduce the service over time.
CZ says Bitcoin still faces established gold systems
Binance co-founder Changpeng Zhao has also compared Bitcoin with gold, although his assessment gave more weight to the infrastructure already built around the precious metal.
Speaking during a Bitcoin Asia fireside chat, Zhao said Bitcoin could eventually become more important than gold if governments begin treating it as a strategic reserve asset. He also acknowledged that gold benefits from mature systems for custody, valuation, and central-bank reserve management.
Gold’s place in official reserves has developed over many years, giving governments established rules and institutions for storing, auditing and trading the metal. Zhao said replacing that system could take time, particularly among large economies that already hold extensive bullion reserves.
National Bitcoin adoption has nevertheless entered official policy discussions in several countries. Zhao has advised governments on digital assets, including reserve-related initiatives, while continuing to argue that state adoption could influence Bitcoin’s long-term standing against gold.
