$XRP as a “Settlement Instrument,” Not a Tokenized Asset
The core of the argument is that $XRP’s role is fundamentally different from platforms being ranked on how much tokenized real-world value they host. According to the discussion, $XRP functions as a transmission layer, the asset used to move value between different tokenized asset types, rather than a platform that itself needs to host tokenized assets.
The Liquidity Thesis
Central to the argument is a claim that institutional use of $XRP for cross-border settlement, once fully active, would require institutions to hold significant $XRP reserves for liquidity purposes, pulling supply out of circulation.
Both acknowledged that Ripple’s On-Demand Liquidity corridors are not yet operating at full capacity, framing current $XRP price action and RLUSD’s growing revenue as distractions from this longer-term liquidity thesis rather than evidence against it.
An Unverified Federal Reserve Anecdote
The discussion also referenced a secondhand account of a former Federal Reserve official discussing $XRP during what was described as an “off the record” panel appearance, allegedly citing Malaysia’s central bank as an example of an institution that would hold $XRP to settle transactions with another country.
