Key Takeaways
- Garlinghouse called the gold relocation an ideal crypto use case.
- Most of the 86 metric tons were sold in New York and rebought in London.
- The operation improved access to gold during a potential crisis.
Garlinghouse Contrasts Gold Logistics With Crypto Transfers
Ripple CEO Brad Garlinghouse argued on Sept. 4 that a months-long gold operation by De Nederlandsche Bank (DNB), the Dutch central bank, exposed the limitations of traditional financial infrastructure. In a post on social media platform X, he contrasted the process with crypto’s capacity to transfer value globally, placing the physical gold market at the center of a broader debate over modern settlement systems.
“A good reminder on how finance still works today… the Central Bank of Netherlands just spent months moving $11B in gold from New York to London,” Garlinghouse wrote. The operation shifted approximately 86 tons from reserves held in New York and Ottawa to London between March and August. The details appeared in DNB’s Sept. 2 statement.
The Ripple chief executive compared the development of cryptocurrency since 2013 with the methods central banks still use to reposition physical reserves. He said crypto had expanded from a small experiment into a multitrillion-dollar asset class supported by financial infrastructure and market liquidity.
“In the 10+ years between those two stories, crypto went from a $1.5B experiment to a $2.7T asset class + financial infrastructure with real liquidity behind it,” he described, adding:
“What didn’t change: central banks (and a lot of the world frankly) still moving value the way they did in the 1940s.”
Nearly 70% of the gold involved in the operation did not travel between the two cities. DNB sold approximately 59 metric tons held in New York and purchased an equivalent amount in London, where gold meeting international market standards is considered easier to trade.
More than 27 metric tons were physically transported from the United States and Canada to DNB’s facility in Zeist, the Netherlands. A similar quantity of compliant gold was then moved from Zeist to London, avoiding the need to remelt the North American bars. DNB said the combined approach spread the risks of a complex relocation, controlled costs, and provided experience with both physical and market-based transfers.
Central Banks Keep Gold Close to Major Trading Centers
London’s share of the Netherlands’ gold reserves increased from 18.1% to 32.1% after the operation. New York’s portion declined from 31.3% to 18.5%, while Ottawa’s fell from 19.7% to 18.5%. DNB retained 30.8% in Zeist, leaving its total reserves unchanged at 612.4 metric tons, valued at 72.2 billion euros at the end of 2025.
The move reflects gold’s continued role in official reserves rather than a retreat from the metal. Central banks added a net 41 metric tons in May, extending an accumulation trend in which 45% of surveyed reserve managers expected their institutions to buy more during the following 12 months. DNB described gold as an “anchor of trust” against extreme systemic risks.
Germany undertook a larger physical operation after adopting a new storage plan in 2013. The Deutsche Bundesbank transferred 674 tons from Paris and New York to Frankfurt over four years, completing the program in 2017. The total included 374 metric tons from Paris and 300 tons from New York.
Crypto Case Centers on Transferring Value, Not Bullion
The Ripple executive presented crypto as an alternative method for storing and transmitting value, not as a way to transport physical bars. Cryptocurrency allows ownership units to move across digital networks without shipping an underlying physical object, while digital assets can be stored, exchanged, and used for payments through blockchain-based systems.
The argument aligns with Ripple’s broader focus on replacing slow institutional processes with blockchain infrastructure. Garlinghouse previously identified an opportunity to introduce digital assets into $16 trillion in annual payments and clearing activity across businesses Ripple acquired, even though crypto represented almost none of that volume when he discussed the figures in June.
That comparison framed the Dutch operation as an example of value being repositioned through physical custody networks and market transactions when a digital system could transfer a tokenized representation of value much faster.
“This an ideal use case for crypto – storing and then moving value instantly, securely, around the world, at little to no cost. How are people still fighting this?!”
Other crypto executives have used gold’s physical limitations to promote blockchain-based assets. Twenty One Capital CEO Jack Mallers argued in April that bitcoin reserves can be verified publicly onchain, while bullion holdings depend on custodians, audits, and institutional records. A token representing gold would still require secure custody, recognized ownership rights, market liquidity, and a reliable redemption process.
DNB’s operation pursued a different objective from a digital value transfer. The central bank repositioned physical reserve gold in London so the metal could be traded more readily during a severe crisis while keeping its total holdings unchanged.
