Ripple’s substantial control over the XRP supply has long been a point of contention, with critics arguing that it poses a threat to decentralization. However, some industry voices suggest that Ripple’s reserves could be a significant strategic asset in driving XRP’s long-term utility and market value. Anderson, a prominent researcher in the XRP community, argues that Ripple’s large holdings align its interests with the success of the XRP Ledger.
According to Anderson, if Ripple had minimal XRP reserves, its incentive to foster the XRPL ecosystem might be weaker. He compares Ripple’s position to that of Michael Saylor with Bitcoin and Ethereum’s early investors, emphasizing that large holders often have a vested interest in promoting network development. This alignment, he suggests, could ultimately be a driving force behind XRP’s success.
The video below is from a former Ripple employee who was responsible for XRP markets and building liquidity.
— Anders 🏁🌏 (@X__Anderson) May 11, 2025
If you want to understand why Ripple holding so much XRP is massively beneficial to Ripple and XRP adoption in general, you need to watch the video.
So in other words,… https://t.co/HoM1pwMoep pic.twitter.com/oFDFMbF7BA
Support from a Former Ripple Insider
Miguel Vias, former Head of XRP Markets at Ripple, echoes this perspective. In a resurfaced video, Vias emphasized that Ripple’s substantial XRP reserves play a crucial role in market development and liquidity. During his tenure, Vias was instrumental in building the necessary infrastructure to support XRP’s integration into global financial systems.
Vias highlighted Ripple’s strategic use of XRP in lending mechanisms to enhance liquidity and stabilize the market. He noted that such measures are more challenging with assets like Bitcoin, which lack similar market dynamics. Furthermore, Ripple’s ability to subsidize liquidity in underserved markets helps pave the way for XRP adoption in regions with limited market depth.
Ripple’s Evolving Financial Strategy
As of early 2025, Ripple holds approximately 41.43 billion XRP, comprising 4.906 billion in spendable wallets and 36.53 billion in escrow. This represents a slight decrease from the 42.51 billion reported at the end of 2024. With XRP’s market value exceeding $104 billion, Ripple has the financial strength to pursue strategic acquisitions aimed at expanding XRP’s use cases.
Also Read: XRP’s Road to $10: How Ripple’s IPO and SEC Settlement Could Trigger a Breakout
In April, Ripple acquired Hidden Road, a prime brokerage firm, as part of a broader strategy to integrate XRP into mainstream financial infrastructure. Analysts suggest that Ripple’s acquisition of institutions like Hidden Road could unlock trillions in potential transaction flows, further cementing XRP’s position in global finance.
Despite ongoing criticism surrounding Ripple’s XRP holdings, proponents argue that the reserves are being deployed strategically to foster adoption and enhance market stability. Whether this approach ultimately benefits XRP’s ecosystem remains to be seen, but Ripple’s financial leverage could prove to be a formidable asset in its ongoing efforts to expand the token’s utility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
