XRP has moved from the sidelines to the center of attention for institutional investors, according to Canary Capital CEO Steven McClurg. 

Speaking on a recent AInvest podcast with host Adam Shapiro, McClurg explained that while XRP was once an asset he simply monitored from a distance, developments over the past two years have forced a reassessment.

Key Highlights

Why Canary Capital’s View on XRP Changed

McClurg noted that several years ago, XRP was not a major focus for Canary Capital. Instead, it was an asset he understood and followed, but it did not stand out compared to other opportunities in the market.

Meanwhile, that changed as Ripple steadily expanded the real-world use of the XRP Ledger. According to McClurg, Ripple has made significant progress in positioning the XRP Ledger as infrastructure for real-world transactions. The network now moves stablecoins alongside other tokenized real-world assets.

This growing activity has shifted XRP from a speculative asset into what he sees as a functional layer for modern finance.

XRP’s Role in Real-World Asset Tokenization

From Canary Capital’s perspective, this evolution puts XRP in a strong position within the real-world asset tokenization space. McClurg believes XRP is increasingly aligned with traditional finance use cases. This sets it apart from many crypto assets that remain focused on niche or purely decentralized applications.

In his view, this gives XRP a credible path to becoming a leading token for real-world asset tokenization.

The discussion also touched on other protocols Canary Capital is watching. McClurg highlighted Hedera as a separate but complementary play. He explained that while the XRP Ledger is more focused on financial markets, Hedera leans toward enterprise solutions.

Its appeal lies in its ability to handle data quickly and serve enterprise software use cases, attracting interest from beyond the typical crypto crowd.

2026 Outlook: What McClurg Expects

McClurg says clearer crypto regulations could change how the market moves. Instead of all coins rising and falling together, prices may start to reflect real use and adoption.

He expects networks like XRP, Solana, and Hedera to be valued based on how they’re used, while Bitcoin could remain influenced by factors like energy costs. This could lead to clear market divergence as early as 2026.

McClurg is cautious on Bitcoin, saying it may not hit a new all-time high until 2027. By contrast, he is bullish on XRP, predicting it could reach about $5 in 2026 due to growing adoption of the XRP Ledger.

For McClurg, XRP is no longer just on the watchlist; it is now a key player in the next phase of crypto adoption driven by real-world utility.

A comment from a well-known XRP Ledger developer has stirred discussion about how people should think about savings in an era of inflation and digital assets.

Bird, the developer behind the XRPL-based meme coin DROP, recently tweeted that if you have more money in XRP than in your bank account, you’re a genius. The statement mirrors a consistent view he has shared over time regarding the long-term role of XRP in personal finance.

Key Takeaways

XRP vs. Traditional Savings

Bird has repeatedly questioned the assumption that keeping money in a bank automatically guarantees financial safety. In earlier comments, he explained that many savings accounts offer annual interest rates of around 4–6%, which may look attractive on paper but often fail to outpace real inflation.

According to his view, everyday costs continue to rise faster than savings balances, meaning purchasing power quietly declines over time. In this context, he argues that traditional fiat savings can create a false sense of progress, even as people gradually fall behind.

This perspective forms the foundation of his belief that holding assets like XRP may make more sense for long-term value preservation.

From Legal Pressure to Utility Growth

Bird has also pointed out that XRP spent years under heavy pressure due to regulatory uncertainty, which limited price performance despite ongoing development. During that period, the XRP Ledger continued to expand, laying the groundwork for future use cases.

With regulatory clarity now largely in place, he believes attention is shifting back to fundamentals. These include XRP’s role in cross-border payments, rising institutional interest, stablecoin activity such as RLUSD, and the growing focus on real-world asset tokenization on the XRP Ledger.

From this perspective, Bird sees XRP not as a short-term trade, but as an asset tied to global financial infrastructure.

XRP as Long-Term Savings

Bird has said he personally treats XRP as a long-term holding. He often highlights self-custody, cold storage, and reduced reliance on banks as key advantages. In his view, directly owning a digital asset can offer more control than parking funds in accounts that struggle to preserve value against inflation.

This mindset aligns with a common sentiment within the XRP community that long-term utility and adoption matter more than short-term price movements.

Views Shared by Other XRP Voices

Figures such as Edoardo Farina have argued that serious investors should aim to hold at least 1,000 XRP, framing it as a minimum position for meaningful long-term exposure. Others have gone further, suggesting that larger holdings could one day support early retirement if XRP plays a major role in future financial systems.

While such projections remain speculative, they highlight the long-term aspirations of XRP holders to achieve financial freedom through the asset.

This view assumes that continued adoption and rising utility will sustain XRP’s long-term relevance in global finance and drive significant price appreciation.

The Clarity Act, a crypto bill moving through the Senate, could let investors use XRP ETFs almost like banks.

The bill looks to clarify digital asset rules and may give certain tokens lighter reporting requirements if they already back U.S.-listed ETFs, putting XRP and several other assets closer to commodity treatment.

Notably, a recent interpretation from the community suggests that investors could treat XRP ETFs like flexible custodial accounts, suggesting that in-kind deposits allow them to move XRP directly into the funds and receive matching shares. 

Key Data Points

• XRP ETFs accept direct token deposits, allowing users to swap XRP for fund shares without converting to cash.
• The Clarity Act could give XRP and other ETF-backed tokens a regulatory status closer to commodities.
• If investors choose to deposit XRP directly into ETFs, this would allow them to treat the ETFs as banks.
• Depositing XRP into an ETF may trigger capital gains taxes under current IRS rules.
• XRP ETF inflows have reached $1.37 billion since launching in November 2025.

How Investors Could Treat XRP ETFs as Banks 

The idea that investors could treat these funds as banks came from XRP community pundit Chad Steingraber. He said these XRP ETFs accept direct deposits of XRP instead of requiring investors to convert their tokens into cash first. According to him, when someone deposits XRP, they receive ETF shares that match the value of what they put in. 

Steingraber believes most people may choose this method once regulation becomes clearer with the passing of the Clarity Act because it lets them switch easily between holding their tokens themselves or holding shares inside a traditional investment product. 

He suggested that, with this model, the XRP ETFs could act like a fully regulated avenue to store value, withdraw when needed, and move funds in and out, which is similar to how someone uses a bank account.

To him, investors could send their XRP into the ETF when they want safe, regulated exposure, then redeem shares back into tokens whenever they need to make payments or transfers on the XRP Ledger. In that sense, the ETF could act as a safe holding zone.

Important Caveats to Note

However, it is important to note that only authorized participants (APs) actually deposit tokens into in-kind ETFs. Regular investors cannot send XRP or any other asset directly to the fund. Instead, APs handle creation and redemption, taking in XRP and issuing new ETF shares, while everyday investors simply buy or sell those shares on the open market.

Also, even if this did work out, calling an ETF a bank stretches the comparison. Notably, ETFs can hold value and allow transfers, but they do not offer insured accounts, loans, or other core banking services. Whether U.S. lawmakers plan to close that gap is still unclear.

Progress on the Clarity Act

Steingraber’s latest comments came after Crypto in America journalist Eleanor Terrett recently shared details from the Clarity Act. Specifically, one section would give certain tokens easier regulatory treatment if they already back a U.S.-listed ETF by January 1, 2026. 

Interestingly, this group includes XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink, placing them next to Bitcoin and Ethereum. Under the proposal, these assets would avoid heavy disclosure requirements normally applied to securities.

The bill states that a token must serve as the main asset inside a nationally listed ETF to qualify. Although the language does not officially reclassify these tokens, it moves them toward treatment more similar to commodities. At press time, the bill is still being debated and revised.