Why Banks Are Holding XRP: Liquidity Pool Algorithm They Don’t Want You to Know

The global financial system faces mounting pressures as companies and investors carry historically high levels of debt. Experts, including Versan Aljarrah, co-founder of Black Swan Capitalist, have highlighted the risk of widespread defaults and margin calls that could intensify. In a video titled, “Why All Banks Are Holding XRP: The Liquidity Pool Algorithm They Don’t Want You to Know”, Aljarrah warns that “once this all starts spilling over into the real economy, it’s going to start in the debt market.” This signals potential shocks that could ripple across banks, institutions, and markets worldwide. In this environment, the search for reliable liquidity solutions has never been more critical. Because $XRP has a fixed supply, banks avoid the inflation risks that come with fiat currencies. That makes it a reliable asset for collateral and liquidity management. That’s why @Ripple ’s network includes over 300+ financial institutions worldwide. https://t.co/N8s2MgRSrv — Versan | Black Swan Capitalist (@VersanAljarrah) August 13, 2025 XRP as a Reliable Asset XRP is the solution to this problem; unlike traditional fiat currencies, it has a fixed supply , which eliminates inflation risks that often undermine the value of conventional money. According to Aljarrah, this feature positions XRP as a “reliable asset for collateral and liquidity management.” Financial institutions can leverage XRP to maintain liquidity efficiently, minimizing exposure to volatility that typically accompanies fiat currencies during economic strain. XRP’s role in the financial ecosystem extends beyond its stability. Ripple’s network currently connects over 300 financial institutions worldwide , facilitating cross-border payments and real-time settlement. In the video, Rosie Rios, Ripple board member and former U.S. Treasurer, emphasizes XRP’s purpose as facilitating cross-border payments efficiently, providing a structural advantage during liquidity restraints that could accompany a financial downturn. Institutional Adoption and Regulatory Considerations The adoption of XRP by banks and central banks reflects a broader trend toward integrating digital assets into traditional financial systems. Aljarrah notes that central banks are now holding XRP alongside gold, recognizing its potential to function as a liquidity conduit during economic stress. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Aljarrah also attached a video of Ripple CEO Brad Garlinghouse, where he highlighted the regulatory challenges facing the industry, noting that the U.S. has relied heavily on enforcement rather than codified frameworks, which limits the ability to integrate these technologies effectively. Despite regulatory hurdles, the infrastructure supporting XRP is increasingly positioned to respond to liquidity crises . Aljarrah predicts that the asset will become particularly critical if margin calls and defaults accelerate, enabling institutions to move funds rapidly and stabilize markets. This operational utility shows why XRP is not merely a speculative asset but a functional tool for financial institutions confronting systemic risk. High debt, rising interest rates, and economic uncertainty make liquidity management critical. XRP’s fixed supply, institutional adoption, and cross-border utility position it as a strategic asset, potentially providing liquidity when traditional financial channels face strain. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Why Banks Are Holding XRP: Liquidity Pool Algorithm They Don’t Want You to Know appeared first on Times Tabloid .

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