JUST IN: XRPL co-creator explains why XRP volatility is a requirement for winning big
Banks need and want an asset like XRP that fluctuates in value yet reduces overall costs of forex payments.
David Schwartz just told you exactly why XRP’s price swings are a feature, not a flaw — and why anyone sitting on the sidelines is paying the highest price of all.
The co-creator of the XRP Ledger just made one of the clearest cases for holding XRP that I’ve seen in years.
It started with a genuine question on social media yesterday. One of those questions that a lot of people are afraid to ask out loud.
Why, someone asked Schwartz, would global banks choose to use XRP and potentially boost its price, when Ripple holds billions of tokens?
The post pulled hundreds of replies. Until Schwartz stunned the newcomers with his wisdom.
Market Context
Schwartz didn’t flinch. It’s an honest question. It deserved a straightforward answer.
He stepped into the thread and explained, point by point, why XRP’s design makes it structurally superior to every alternative available to banks. He explained why XRP is not just a payment rail or “tool,” but a comprehensive toolset combined with an asset that is altogether worth holding and is being held not only by individual investors, but at financial institutions.
And the key to his argument? Volatility is the price of reducing fees, and the fee reduction makes holding XRP worth the volatility. Banks will accept the volatility of XRP, because it gives them a better and more profitable outcome than not accepting XRP, even amid short-term losses.
To fully understand why, join me in today’s XRP Premium Analysis.
News
CFTC signals readiness to oversee crypto asset markets (Cftc.gov)
US Treasury releases draft state framework for stablecoins (Treasury.gov)
Hong Kong misses deadline for first stablecoin license (TheBlock)
Alabama grants legal recognition to DAOs (Crypto.news)
Cambodia extradites former Huione Pay chairman to China (Reuters)
CFTC settles with former FTX engineering chief for $3.7M (Cftc.gov)
Genius Group $GNS Q1’26: Revenue $3.3M +17% y/y | Net loss $0.5M | aEBITDA $0.6M | Liquidates BTC (GlobeNewswire)
Metaplanet $MTPLF +5,075 BTC ($405M) | BTC holdings 40,177 (X)
Cango $CANG raises $65M plus $10M convertible note (PRNewswire)
Bitfarms $BITF rebrands to Keel Investiture, redomiciles to US (GlobeNewswire)
CoinShares $CSHR completes SPAC, begins Nasdaq trading (GlobeNewswire)
Cango $CANG receives NYSE non compliance notice (PRNewswire)
Bithumb pushes IPO to 2028 (Mk.co.kr)
Hyperscale Data $GPUS awarded $26M in legal dispute (PRNewswire)
Drift protocol exploited for $285M (Decrypt)
Franklin Templeton $BEN acquires Coinfund spinoff (WSJ)
eToro $ETOR launches crypto trading in NY (GlobeNewswire)
EDM Markets applies for National Trust Bank charter (Occ.treas.gov)
Bitcoin difficulty expected to rise 3.7% tomorrow (Newhedge)
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XRP Premium Analysis
In response to banks rewarding Ripple’s XRP holdings, plus another user asking whether XRP is “still relevant” given the rise of competitors in the digital asset space since it debuted in 2012, Schwartz responded with a framework that separates XRP from the pack on three distinct dimensions.
First, XRP bridges currencies cheaper than any bank foreign exchange market in history. XRP doesn’t care whether it’s moving dollars, pesos, yen, or euros. A dollar-pegged stablecoin, for example, is only “stable” if you happen to need dollars on both ends of a transaction and the reserves stay pegged and unimpaired.
During multi-jurisdictional payments, which are exceedingly common for banks, pegs are a limitation, not a strength.
As Schwartz put it, “Applications that involve multiple jurisdictions with different native fiats don’t benefit as much from the stability.”
In other words, XRP doesn’t pick sides. It bridges everything. That is an advantage no single-currency asset can touch.
Second, and this is critical, XRP cannot be…