A crypto analyst has rebutted claims that Ripple uses XRP as a cash machine to build a conventional fintech empire.
“Critics Misread Ripple’s Strategy”
Notably, these accusations typically resurface whenever Ripple announces new acquisitions, such as Hidden Road (now Ripple Prime) and Rail. Critics, he said, frequently claim that proceeds from Ripple’s monthly XRP sales directly finance these deals.
However, the analyst argued that while critics are “almost right,” they fundamentally misinterpret Ripple’s business model and long-term vision. He acknowledged that Ripple often sells portions of its XRP holdings, but stressed that the purpose is not to replace XRP with conventional assets.
Instead, he explained that Ripple monetizes XRP to build a financial ecosystem that increases XRP’s utility and long-term value. Far from treating XRP as disposable operating capital, Ripple keeps the token at the center of its balance sheet.
Selling XRP as a Strategic Tool
The analyst further framed XRP sales as a means, not an end in itself. He suggested that Ripple controls roughly 40% of XRP’s total supply. He believes the holdings could eventually be worth more than the company’s entire balance sheet if adopted at scale. Hence, he argued that treating such an asset like ordinary cash would be irrational.
Rather than selling XRP to accumulate traditional businesses, the analyst said Ripple uses selective monetization to acquire infrastructure, licenses, and institutions that make XRP more relevant, necessary, and valuable over time.
Furthermore, CryptoinsightUK highlights Ripple’s involvement with institutional infrastructure, including prime brokerage services and stablecoin rails, as evidence of this strategy. He framed these acquisitions and integrations as multipliers designed to support XRP’s role in global finance.
In particular, the analyst stated that these acquisitions would help enhance transaction throughput and create real-world settlement demand, among other benefits.
Flywheel Effect Critics Fail to See
The analysis also points to a feedback loop that many critics overlook. As XRP remains central to Ripple’s balance sheet, the company continues to build payments, custody, liquidity, stablecoin, and treasury infrastructure around the asset.
As institutions adopt this full-stack offering, XRP increasingly functions as an efficient neutral settlement asset. Demand compounds over time, and long-term price appreciation, the analyst argued, ultimately outweighs any short-term impact from XRP sales.
Under this model, selling limited amounts of XRP is a form of capital deployment intended to strengthen the asset’s long-term demand and price performance.
Ripple CEO: XRP Remains Our “North Star”
At Ripple Swell 2025, CEO Brad Garlinghouse reaffirmed that XRP remains central to Ripple’s long-term strategy, despite the company’s expansion into stablecoins, prime brokerage, and institutional services.
He described XRP as Ripple’s “heart, soul, and north star,” stressing that all major decisions ultimately support the XRP ecosystem.
Addressing community concerns that Ripple’s stablecoin and multi-chain strategy signal a move away from XRPL, Garlinghouse clarified that XRP liquidity remains core to Ripple’s vision.
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