XRP Pristine Collateral: CEO Reveals Crypto Asset

What to Know:

• Digital Ascension Group CEO Jake Claver posits that XRP is undervalued as foundational infrastructure.
• Ripple’s focus on institutional DeFi and tokenized assets could drive demand for XRP.
• Institutional inflows into XRP may increase as its utility in tokenized markets grows.

XRP has long been a topic of debate among crypto investors, with opinions ranging from speculative asset to foundational infrastructure. Jake Claver, CEO of Digital Ascension Group, recently argued that most XRP holders underestimate its true potential. He views XRP as “the most pristine collateral” and essential for the new financial system. This perspective aligns with Ripple’s push for institutional adoption and real-world use cases on the XRP Ledger (XRPL).

XRP as Foundational Collateral

Claver’s argument centers on XRP’s potential as neutral, liquid collateral for settlement, liquidity, and credit in regulated markets. This contrasts with the perception of XRP as a purely speculative asset driven by short-term price movements. The idea is that XRP can facilitate the movement of value, unlock collateral, and improve balance sheets within a tokenized financial system. This vision positions XRP as a key component in the evolution of financial infrastructure rather than a competitor to traditional assets.

Ripple’s Institutional DeFi Blueprint

Ripple’s roadmap for institutional DeFi reinforces the thesis of XRP as foundational collateral. The XRPL is evolving beyond simple payments into a comprehensive financial layer supporting FX trading, tokenized assets, collateral management, and on-chain credit. XRP plays a central role in this ecosystem, powering settlement, network fees, reserve requirements, FX bridging, and collateral flows. Features like Permissioned Domains and Credentials are designed to enable institutions to operate within compliant, KYC-ready frameworks.

The integration of stablecoins like RLUSD on XRPL, with XRP acting as a liquidity bridge, further exemplifies its utility in facilitating efficient and compliant transactions.

Native Lending and Institutional Participation

Upcoming upgrades to the XRPL, including a native lending protocol (XLS-65/66), are set to introduce fixed-term on-chain loans backed by Single Asset Vaults. This protocol will allow for off-chain underwriting for institutions, with XRP serving as a borrowable asset, settlement layer, and FX bridge. Early institutional participants like Evernorth are planning to deploy capital to boost yield and liquidity, integrating XRP into real financial workflows. Additional upgrades such as smart escrow, confidential transfers, and a permissioned DEX aim to enhance the XRPL’s appeal to regulated institutions.

Tokenized Commodities on XRPL

Beyond infrastructure developments, on-chain data indicates growing real-world adoption. The XRPL now hosts over $1.14 billion in tokenized commodities, making it the largest tokenized asset type on the network. These assets include energy-backed tokens, diamonds, and other commodity-linked products. This positions the XRPL as second only to Ethereum in total tokenized commodity value. The increasing volume of real-world assets supports the narrative that XRP is being utilized as settlement and collateral in tokenized markets, driving institutional interest and adoption.

Market Reaction and Institutional Confidence

The market has responded positively to these developments, with XRP experiencing a notable rebound. After a decline to $1.11 amid broader market liquidations, the token rallied to $1.53, marking a substantial increase. While the price has since stabilized, analysts attribute the rebound to renewed institutional confidence, whale accumulation, and the expanding role of XRP within the XRPL’s evolving financial architecture. This suggests a growing recognition of XRP’s potential as a key component in the future of finance, driving demand and supporting its long-term value.

While the future utility and price of XRP remains uncertain, Ripple’s strategic focus on institutional DeFi and the increasing tokenization of real-world assets on the XRPL present a compelling case for its long-term potential. As institutions continue to explore and adopt blockchain-based solutions, XRP’s role as a settlement and collateral asset could drive significant demand and reshape its market perception. Whether XRP can truly become the “oxygen” for the new financial system, as Claver suggests, remains to be seen, but the pieces are gradually falling into place.

Related: Ethereum: Token Burn Signals Strong Liquidity

Source: Original article