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ETFs Have Only a Few Options to buy XRP, And Escrow Isn’t One of Them: Analyst

Abdulkarim Abdulwahab
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ETFs Have Only a Few Options to buy XRP, And Escrow Isn’t One of Them: Analyst

Rising questions about XRP’s true circulating supply are fueling new debate among analysts as spot XRP ETFs continue purchasing XRP.

XRP community figures Zach Rector and Chad Steingraber recently pointed out that ETFs have very few places to acquire XRP. And none of those sources include Ripple’s large escrow reserves.

The Real XRP Float May Be Far Lower Than Reported

Rector sparked the discussion by questioning XRP’s true “float,” meaning tokens freely available for trading. He argues that XRP’s effective supply is well below 10 billion XRP, far lower than the roughly 60 billion circulating supply market trackers show.

He notes that ETFs alone already hold more than 300 million XRP, suggesting that the pool of available XRP may be far thinner than most assume.

In reaction, community members offered various views on how to calculate the float. One contributor estimated that:

  • Retail may collectively hold around 3 billion XRP
  • Tier-1 exchanges, including Coinbase, Binance, Kraken, Uphold, and Bitru,e might hold 5–10 billion XRP
  • OTC and dark-pool supply remains largely unclear

Despite differing estimates, most agreed that the true liquid supply is nowhere near the published figures. The conversation has now shifted to where ETFs can obtain XRP once OTC liquidity dries up.

Ripple’s Escrow Is Off-Limits; ETFs Cannot Source XRP There

Meanwhile, Chad Steingraber argued that XRP ETFs cannot purchase XRP from Ripple’s escrow under current U.S. rules. This restriction stemmed from the 2023 court ruling in the Ripple–SEC case.

Notably, the court stated that Ripple’s institutional sales of XRP under contracts constituted unregistered securities offerings. However, programmatic sales on public exchanges were not securities offerings.

Ripple has since received a waiver allowing it to raise capital from accredited investors, but this does not restore the ability to sell XRP directly to institutional buyers.

As a result, institutional investors and ETF issuers must source XRP from the open market, not from Ripple. Currently, Ripple holds 34,700,000,005 XRP in escrow and another 4,954,117,520 XRP in its available corporate balance.

So, Where Can ETFs Actually Get XRP?

According to analysts, ETFs have only a few realistic sourcing options:

  • Tier-1 exchanges (Coinbase, Binance, Kraken, Bitrue, Uphold, etc.)
  • Remaining OTC and dark-pool liquidity
  • Secondary-market sellers, including retail and institutions

This limited sourcing funnel is why analysts believe XRP may face a supply crunch. With ETFs already holding roughly 300 million XRP and more issuers preparing to enter, demand is accelerating while accessible liquidity continues to thin.

Imminent Supply Shock and “Crazy” Price Action

In a separate commentary, Jake Claver said XRP ETFs are “eating through” OTC and dark-pool reserves faster than expected. Claver estimated that only 1–2 billion XRP were available privately before ETFs launched.

Given the pace of ETF accumulation, Claver believes a supply shock is not just possible but inevitable. Specifically, he predicts that XRP could see “crazy” price action as a result.

The XRP community now waits to see how quickly this potential supply crunch materializes, and whether it will impact price as widely forecasted.

Ethereum Could Flip Resistance to Test $3,500, Here’s How

Mark Brennan
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Ethereum Could Flip Resistance to Test $3,500, Here’s How

Ethereum has continued to rebound from a 4-month low as technical indicators hint at a potential bullish trend continuation.

Ethereum (ETH) is closing the week with a strong rebound, firmly back above the $3,000 mark, although it has already lost by about 1% in the last 24 hours.

The altcoin is up roughly 10.8% on the week, with today’s trading confined to a relatively tight daily range between $2,986 and $3,042. That consolidation near the top of the recent move hints at ongoing buying interest, even as short-term traders begin to lock in profits around psychological resistance.

Notably, the second largest crypto by market capitalization is down 5.9% in the last 14 days and down over 25% in the last 30 days. The latest price action shows buyers gradually regaining control after November’s volatility, but key resistance and support levels will determine whether this recovery can extend or fade into consolidation. 

Where is Ethereum’s Momentum Skewed?

Looking at the technical end, Ethereum’s daily chart shows a market trying to stabilize after a prolonged downtrend. Price has bounced from the lower Bollinger Band at $2,619 and is now pressing against the mid-band, the 20-day simple moving average, at $3,094. 

Ethereum
Ethereum

This mid-band currently acts as the first key resistance, capping the continuation of the trend. Meanwhile, the upper Bollinger Band near $3,569 forms the next resistance area if bulls manage a clean breakout above the 20-day SMA. 

On the downside, initial support sits around the recent cluster of candles just above the lower band, with stronger backing at the band itself near $2,620. Also, a contraction in the volatility may be on the brink, as broader bands often precede a “squeeze” phase where price consolidates before the next major directional move.

Elsewhere, the MACD indicator has just printed a bullish crossover, and the histogram has moved into positive territory, signaling that bearish momentum is fading and short-term buyers are gaining some traction.

A sustained move above the mid-band would open the door for a continued grind toward the upper band, while a rejection here could see ETH slide back toward the lower support zone to retest the durability of this rebound.

Higher Ethereum Timeframes

On the higher time frames, Ethereum’s structure looks much more constructive than the day-to-day volatility suggests. Trader Tardigrade’s 2-month chart frames ETH inside a large bull pennant that has been forming since the explosive rally off the 2020 lows. 

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The pattern is defined by fluctuations that compress price into converging trendlines, a classic consolidation after a strong “flagpole” advance. 

According to the analyst, ETH has recently retested the upper boundary of this formation from above, turning former resistance into support. A sustained hold above the upper trendline would support Tardigrade’s view of an “upward trend only vibe,” that targets levels like $7,500. To reach $7,500 from the current $3,023, Ethereum must surge by about 148.1%.

Amundi Issues First Tokenized Euro Money Market Fund Share on Ethereum

Zabi
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Amundi Issues First Tokenized Euro Money Market Fund Share on Ethereum

Europe’s top asset manager, Amundi, has unveiled its inaugural tokenized share class for a euro-denominated money market fund, powered by the Ethereum blockchain.

This launch enables the fund to operate in a hybrid format, offering both traditional and blockchain-based share classes.

According to a press release, the first on-chain transaction went live on the Ethereum network on November 4, marking a key step in Amundi’s efforts to modernize fund operations.

CACEIS collaborated on the initiative, supplying the tokenization infrastructure, tools for managing investor wallets, and a digital platform to handle investment subscriptions and withdrawals.

Both firms stated that tokenization can streamline order flows, broaden investor access, and enable 24/7 trading. These advantages, in turn, align closely with the growing expectations of digital-first investors.

Conservative Portfolio Backed by Short-Term Euro Debt

Although the fund debuts with a modern distribution model, it continues to follow a conservative investment approach. Amundi reports that its holdings consist of short-term, top-tier euro-denominated debt. These holdings feature money market instruments and overnight repurchase agreements backed by European sovereigns.

The Paris-based firm oversees around €2.3 trillion in assets and offers financial services to over 100 million individual clients, according to its website.

Global Asset Managers Accelerate Tokenized Fund Adoption

Amundi’s move comes as global asset managers intensify their push into tokenized markets.

For instance, data from RWA.xyz shows that BlackRock’s on-chain money market vehicle now holds $2.31 billion in tokenized assets. Franklin Templeton’s fund manages more than $826.61 million.

Both companies are also broadening their blockchain footprints. Earlier this month, Franklin Templeton joined the Canton Network, a permissioned blockchain ecosystem for regulated financial institutions. 

Meanwhile, BlackRock has added support for Polygon, Arbitrum, Aptos, Avalanche, and Optimism, thus expanding investor access beyond Ethereum.

BIS Warns of Potential Risks Amid Rapid Growth

A recent Bank for International Settlements (BIS) bulletin reported that tokenized money market funds reached $9 billion by the end of October. This represents a substantial increase from approximately $770 million at the end of 2023.

However, the BIS warned that the growing use of tokenized Treasury portfolios as collateral could introduce new operational and liquidity risks to the markets.

David Schwartz Says Ripple Should Have Prioritized Smart Contract Capabilities on XRP Sooner

Lele Jima
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David Schwartz Says Ripple Should Have Prioritized Smart Contract Capabilities on XRP Sooner

Ripple’s CTO, David Schwartz, says the company should have prioritized native smart contract capabilities on the XRP Ledger (XRPL) much earlier.

Speaking during a recent X Spaces session titled “Programmability on the XRPL,” Schwartz explained that Ripple’s early skepticism toward smart contracts delayed the development of the feature at the Layer-1 level. In his view, this hesitation ultimately slowed developer innovation across the XRPL ecosystem.

Early Hesitation

Launched in 2012, the XRP Ledger was designed for speed, reliability, and payments, not complex, programmable applications. Consequently, Ripple initially saw no need to develop smart contracts.

After Ethereum launched in 2015, smart contracts gained popularity in the crypto space, and many projects began exploring them. While XRPL developers were making moves to introduce the feature, Ripple remained hesitant.

According to Schwartz, the company’s early stance reflected a belief that smart contracts had to be perfect or industry-leading to justify implementation. In hindsight, he admits this mindset caused Ripple to overlook the value of incremental progress.

Current Limitations Faced by Developers

Furthermore, Schwartz acknowledged that developers currently face challenges building directly on the XRP Ledger. According to him, developers must either propose new features to the blockchain, which requires community approval through amendments, or focus solely on creating wallets and front-end applications.

While noting that building wallets and user interfaces is essential, Schwartz emphasized that this approach is not ideal for creating sustainable businesses on the blockchain.

Underestimating the Value of Small Progress

In addition, he noted that even basic smart contract functionality would have delivered meaningful benefits. The CTO suggested that this basic functionality could have enabled developers to differentiate their products with unique on-chain features and to implement custom business logic.

Distinguishing products on-chain, according to Schwartz, tends to give developers a better experience on the ledger and influences their decisions about which blockchain to build on.

AMM Isn’t Enough

Furthermore, Schwartz noted that while XRPL’s Automated Market Maker (AMM) is a powerful feature, its impact is limited without surrounding tools such as smart contracts, which would have enabled deeper integration and programmability.

In essence, he believes that even the simplest smart contract functionality would have enabled developers to build new products on top of existing features.

Meanwhile, Ripple began exploring smart contract capabilities on the XRPL last year. The initiative has already produced significant results, with the feature deployed on XRPL’s AlphaNet earlier this month, enabling developers to test it before its eventual rollout on the mainnet.

Expert Says XRP Price Has To Go Up, There Is No Plan B: Here’s Why

Elendu Benedict
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Expert Says XRP Price Has To Go Up, There Is No Plan B: Here’s Why

An XRP community pundit has shared why he believes XRP ETFs will likely scramble to buy XRP in the open market instead of from Ripple’s escrow.

The XRP ETFs have made their way to the market, and their early numbers have been rather impressive. For context, the Canary Capital XRP ETF (XRPC) emerged first on Nov. 13, commanding $245 million in debut inflows. Bitwise, Grayscale, and Franklin have since launched their own products.

XRP ETFs Seeing Impressive Figures

Notably, data from Sosovalue shows that the four existing XRP ETFs have recorded $643.92 million in cumulative net inflows over the past two weeks, with the latest intraday netflow figure from Nov. 26 being $21.81 million. However, the XRP price has not skyrocketed as much as some investors expected. 

For context, after a brief but sharp 13% upsurge between Nov. 23 and 24, XRP has faced resistance at the $2.2 price mark, consolidating at this level over the past three days. At the current price of $2.202, XRP is down 12.2% this month despite the ETF inflows. Nonetheless, market pundits believe the funds would eventually push prices up.

First Year for XRP ETFs Would be Aggressive 

One individual who has persistently championed this narrative is Chad Steingraber, a game developer and XRP community figure who has continued to track ETF developments. 

In one of his latest commentaries, he insisted that the ETFs could aggressively accumulate more XRP tokens and tried to debunk claims that when the XRP ETFs do buy XRP, they could procure the tokens from Ripple’s escrow.

Taking to X, he specifically suggested that the XRP ETFs would be “relentlessly aggressive” during the first year of trading. This aligns with his long-held belief that the products could attempt to drain the circulating XRP supply within a year.

Steingraber believes the only thing capable of stopping these funds from scooping up the entire XRP supply in circulation is for the price of XRP to surge higher to match the accumulation spree. For perspective, at $2.2, a $1 billion inflow would amass 454 million XRP tokens. However, if the price had surged to $6, the same $1 billion would have amassed only 166 million tokens.

“The price has to go up,” the market pundit said. He noted that besides this solution, there would be no Plan B. Notably, this commentary aligns with the trend Bitcoin ETFs observed last year. For context, in their first trading year, in 2024, the Bitcoin ETFs saw ten months of inflows and only two with outflows. Within this period, they scooped up over $35 billion worth of BTC, pushing prices up.

Why ETFs May Not Buy XRP from Ripple’s Escrow

Steingraber expects a similar pattern with XRP. However, some have suggested that even if the ETFs do amass XRP aggressively, they may purchase from Ripple’s escrow. For context, this practice could undermine the positive impact of the buying pressure on the XRP price by creating a demand-neutral environment. 

Specifically, if Ripple releases 300 million XRP tokens worth $660 million at current prices and these ETFs scoop them up, the impact on price would be minimal. Steingraber does not believe this would be the case.

In a subsequent commentary, he called attention to the fact that the authorized participants (APs) would need to purchase the underlying tokens within two days once the ETFs record inflows. Notably, they don’t have the time to wait for a “better deal” over the next few weeks through other avenues like Ripple escrow.

According to Steingraber, since the escrow releases on a particular basis, the APs may not be able to wait for each unlock before procuring the tokens. In order for the APs to buy from Ripple’s escrow, Ripple would need to release all 1 billion tokens for the month to Ripple Prime and wait for when the funds would need to procure XRP. 

Steingraber noted that if this happens, Ripple would have sold off their bags at just $2, forfeiting the potential gains they could get from holding onto the tokens until prices surge before selling them off. Steingraber believes this is largely unfeasible.

Analyst Says XRP Testing Everyone’s Patience and “Majority Is Folding Under Pressure”

Elendu Benedict
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Analyst Says XRP Testing Everyone’s Patience and “Majority Is Folding Under Pressure”

A prominent market analyst believes the recent bearish trend is a test of XRP holders’ character, predicting a price outburst in the near future.

Notably, Charting Guy shared this view in his recent commentary, urging patience with XRP. The cryptocurrency has continued to consolidate around the psychological $2 price, a level that analysis identified as playing a crucial role in investor sentiment.

Year-Long XRP Accumulation

In his analysis, Charting Guy claimed that XRP’s recent consolidation is testing the patience of enthusiasts. Unfortunately, he noted that many holders are falling for this trap and “folding under pressure.” 

His statement aligns with the growing sentiment in the XRP community that XRP is undervalued at current prices. Many analysts have suggested that XRP holders have no idea what they have. They believe that the asset would one day reach its true valuation, benefiting those who did not sell their stash.

Meanwhile, Charting Guy’s Thursday analysis suggested that XRP is in a year-long accumulation zone. An accompanying chart further buttressed this point and also highlighted subsequent developments in the event of a momentum shift.

Wyckoff Method Provides Perspective

The chart shows that XRP has been trending within a descending channel in the 2-day timeframe. This accumulation started from its July high of $3.67, with the token fluctuating between the top and bottom of the wedge.

Wyckoff Method Formation on XRP 2D Chart
Wyckoff Method Formation on XRP 2D Chart

Charting Guy highlighted the alignment of the price action with the Wyckoff method, a technical pattern developed by Richard D. Wyckoff in the 20th century. The structure started with preliminary supply (PSY) at $2.90 in December 2024, when large holders began to exit the market.

The January high of $3.39 aligned with the buying climax (BC), suggesting the move was a high-volume rally, spurred by market euphoria. Meanwhile, the beginning of the accumulation channel in July was the upthrust (UT) price action, which is a false breakout above the BC to deceive bulls.

The analyst expects this accumulation pattern to fully form, spurring the next XRP impulse move. The subsequent key price actions to monitor are the show of strength (SOS) move to retest January’s high of $3.39 and the following last point of support (LPS) retracement to $2.90. If this happens successfully, it will confirm the start of a fresh uptrend.

XRP Target When Accumulation Ends

Meanwhile, Charting Guy’s analysis also identified price targets if this Wyckoff accumulation pattern concludes. The chart shows a possible rally to a new all-time high of around $8, representing a 263% surge from its current market price of $2.20.

Remarkably, this analysis is not the first projecting that XRP would soar to $8. The Bearable Bull also asserted this price in his recent commentary, calling the mark XRP’s “next chapter.”

Analyst Dark Defender also agrees. He predicted that the completion of the final lap in a five-wave Elliot wave pattern would see XRP reach the $8 price level.

Analyst Predicts an Exciting Move for Shiba Inu as Bulls Reemerge

Lele Jima
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Analyst Predicts an Exciting Move for Shiba Inu as Bulls Reemerge

A popular analyst has shared an optimistic update with the Shiba Inu community, noting that buyers are gradually returning to SHIB. 

The bullish expectations many had for November 2025 largely went unmet, as crypto holders suffered significant losses that are only just beginning to ease. Shiba Inu also bore a notable share of the November crypto bloodbath. 

Its price plunged from above $0.00001 to a low of $0.0000067 as many holders moved into stablecoins to limit further losses, while potential buyers stayed on the sidelines. 

Bulls Are Returning

Now that the market has stabilized, community analyst Shib Knight highlighted a shift in momentum and stressed that bulls are returning to SHIB.

His commentary comes alongside a chart that highlights Shiba Inu’s improving price action and tightening market structure — signals Knight believes could set the tone for a bullish week.

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Notably, the accompanying SHIB/USDT chart shows the token trading at $0.00000870, reflecting a 1.28% intraday gain at the time of the snapshot. The closeness of the sell level at $0.00000871 and the buy level at $0.00000872 signals reduced volatility and a tightening trading range.

Moreover, the chart shows that SHIB has been steadily forming higher lows since dipping below $0.000007, a classic sign of bullish momentum building. The price action is trending sideways with periodic upward pushes, suggesting ongoing accumulation or renewed buying pressure. 

Shiba Inu Next Move Could Be Exciting 

Amid this, the analyst noted that SHIB’s tightening structure signals an early shift in market momentum. With bulls beginning to reassert themselves, Knight believes that Shiba Inu’s next move could be exciting for the community. 

At press time, SHIB is up 1.3% over the past 24 hours and 6.83% over the past week. SHIB’s brief upside aligns with a broader relief rally across the crypto market, which has produced modest gains for major assets like Bitcoin and Ethereum. 

SHIB Performance in December

Meanwhile, after a month of steady declines in November, investors are now turning their attention to December and looking ahead to what it may bring for SHIB. 

Data from CryptoRank shows that December has historically been bearish for Shiba Inu, with the asset dropping 29.5%, 13.5%, and 21% in 2021, 2022, and 2024, respectively.

The only exception came in December 2023, when SHIB posted a 24.6% gain. Overall, Shiba Inu shows an average December performance of –9.84% and a median loss of 17.2%.

Screenshot 2025 11 28 at 91548 am
Shiba Inu chart CryptoRank

Despite this bearish history, SHIB’s performance this year remains uncertain, as past trends do not guarantee future outcomes. 

The Recent Solana Bounce is Fading at Key Resistance, Is Another Leg Down Ahead?

Mark Brennan
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The Recent Solana Bounce is Fading at Key Resistance, Is Another Leg Down Ahead?

Solana stalls at key resistance as technical signals and views from market analysts suggest this could be a fragile rebound that may face pullback.

Solana (SOL) is ending the week on relatively firm footing, although momentum has shifted more bearish. SOL is hovering around $139.58 on CoinGecko, down 2.9% in the past day and roughly 6.5% higher over the last week.

Price action shows the asset recovering from the $121 area, forming a sequence of green candles before a sharp late-week move that briefly pushed the market above $144. Even after a modest pullback, Solana still sits in the upper half of its recent range, but has failed to surpass a key resistance level.

The weekly pattern suggests steady demand, as buyers repeatedly stepped in on dips and drove the price to successive higher peaks. At the same time, the reaction near the $144 region has created a short-term ceiling, setting the stage for a deeper look at whether SOL can build a sustained push above this zone or face a leg down.

Solana Price Analysis

From a technical perspective, Solana is still working through a corrective phase after dropping from the late-October swing high above $205 to the mid-November low around $121. The Fibonacci retracement drawn over this swing shows that the current rebound has so far struggled to clear the 23.6% level around $141, with price now hovering below that area.

Solana
Solana

Above, the next resistance clusters sit near the 38.2% retracement around $154, the 50% level near $163, and the 61.8% level around $173.

Unless bulls can reclaim at least the 23.6%–38.2% band with conviction, the bounce still looks more like a relief rally inside a broader downtrend than a confirmed trend reversal. If the price faces further resistance at 23.6%, Solana could plunge further to test the liquidity at $121.65.

Meanwhile, momentum indicators back up this cautious view. Specifically, the daily RSI has recovered from near-oversold readings around 30 to roughly 42, signaling that the intense selling pressure has cooled but that buyers do not yet have clear control. 

The oscillator remains below the neutral 50 line, keeping the bias slightly bearish. A sustained move in RSI above 50–60, coupled with a break of the $153–$163 Fibonacci zone, would strengthen the case that November’s low marked a medium-term bottom. 

Solana Has Bottomed for a While?

Elsewhere, a post by analyst Ted on X suggests that Solana might have reached a short-term bottom, pointing to the rebound in Solana-treasury stocks. His post highlights $527.9 million in inflows to the Bitwise Solana ETF since November 10.

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Accompanying charts depict recent upticks in stocks of Solana-linked treasury firms like Sol Strategies Inc. and SharpLink Technology, indicating correlated recovery in traditional finance exposure to the ecosystem.

According to the analyst, it seems Solana has bottomed. However, he cautions that this bottom may not hold without accelerated institutional buying. He also warned that if institutional buying does not accelerate, it may not take long for Solana to print new lows.

CME Group Works to Restore Services After Technical Outage Shuts Markets

Zabi
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CME Group Works to Restore Services After Technical Outage Shuts Markets

The CME Group suspended trading across several major markets after a cooling failure at its data center partner CyrusOne caused a widespread systems outage late on November 27.

The disruption, which emerged amid thin post-holiday liquidity conditions, forced core platforms offline, leaving traders without access to real-time pricing.

Cooling Malfunction Freezes Key Electronic Markets

According to CME Group, the technical issue at the CyrusOne facility affected infrastructure supporting CME Globex, EBS, and BMD, halting activity across futures, options, and foreign exchange markets. 

The exchange posted its first alert at 20:40 CT, noting that teams were working to restore services.

“Our markets are currently halted due to a cooling issue at CyrusOne data centers,” CME said in repeated status updates. The exchange added that it would provide pre-open guidance once systems were stable.

Market Data Stalls During Low-Liquidity Asian Hours

The outage occurred at a particularly challenging moment for global markets. Specifically, liquidity was already thin after the Thanksgiving break, creating conditions where even small disruptions can have a large impact.

According to data from LSEG, pricing for major equity and currency benchmarks stopped updating around 03:44 GMT.

With markets stuck, traders across the Asia-Pacific region reported being unable to hedge positions or execute orders amid heightened volatility. Reuters reported that the freeze affected key contracts, including the S&P 500 and Nasdaq 100 futures.

Commenting on the impact, Tony Sycamore of IG Markets said, “This hasn’t helped at all, especially on a day when there was real interest to transact.”

Outage Follows Recent Technology Upgrades

The breakdown comes months after CME expanded its technology partnerships to strengthen operational resilience. For instance, in March, the exchange announced a collaboration with Google Cloud to explore cloud-based efficiency tools, including tokenization and distributed ledger technologies.

At the same time, CME continued to diversify its product offerings. The exchange recently unveiled new spot-quoted crypto futures for XRP and Solana, which are expected to launch on December 15, pending regulatory approval.

Despite the current disruption, CME has reported record activity in crypto and U.S. Treasury markets. Its stock is up more than 20% this year, extending strong returns for long-term investors.

CME Working Toward Full System Restoration

CME said its technical teams remain focused on bringing all markets back online. At the time of publication, the exchange has not provided a timeline for full service restoration. However, it continues to issue rolling updates.

Meanwhile, clients have been urged to monitor official channels for pre-open announcements and further instructions.

American Model Shares Potential XRP Role in Japan’s $4.5 Trillion Reverse Carry Trade

Albert Brown
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American Model Shares Potential XRP Role in Japan’s $4.5 Trillion Reverse Carry Trade

American model Bri Teresi recently discussed the idea that XRP could play a role in Japan’s reverse yen carry trade, a multitrillion-dollar unwind now moving through global markets. 

In a recent post on X, Teresi said she believes XRP matches the type of fast and programmable system that the financial infrastructure of today needs. 

Teresi Spotlights XRP’s Strengths

She called attention to guidance from the Bank for International Settlements (BIS), which says an effective settlement asset should turn over 8 to 10 times a day so banks avoid holding slow-moving currency. 

Teresi argued that newer systems focus on speed, and she sees XRP meeting that requirement, with SBI Remit in Japan already using it for faster cross-border settlements.

According to the model, XRP’s design allows it to move far faster than the BIS benchmark. After watching an analysis from crypto educator Lewis Jackson, she raised an important question: if trillions begin crossing borders as this reverse carry trade unwinds, what kind of transaction speed will regulators expect from a bridge asset like XRP?

What is The Reverse Carry Trade?

For context, Jackson highlighted the entire situation in a recent podcast episode. During his commentary, he discussed how a carry trade works, using a simple example. 

Specifically, a person could borrow $100,000 in a country offering 0% interest, convert the funds into their own currency, and invest it at a 5% return. After one year, that investor would still owe exactly $100,000, but the investment would produce $105,000, leaving $5,000 in profit. 

Jackson explained that Japan enabled this type of strategy for more than twenty years because the Bank of Japan cut interest rates to 0% in 1999, held that level for years, and even pushed rates negative in 2016, which effectively paid people to borrow.

He noted that this environment created what the market calls the yen carry trade. Ministry of Finance data places the size of this trade between $4.2 trillion and $4.5 trillion, with major global banks and financial institutions taking part. The Bank for International Settlements documented this activity as well.

However, everything changed on March 19, 2024, when the Bank of Japan ended its negative-rate era and raised its benchmark rate to 0.1%. Jackson said the small move created major concern because investors feared more hikes could follow. 

Notably, higher rates would erase the profit potential of carry trades, so many traders started to unwind their positions. This led to the reverse carry trade. He estimated that roughly 40% of the trade had already reversed, leaving 60% still active. This remaining portion could strain the system if it unwinds too quickly.

XRP Could Have a Role to Play

Jackson then explained why some people in the crypto community believe XRP could help. For context, reversing a carry trade at this scale requires fast and reliable currency conversion, and traditional rails often move slowly and cost a lot. 

According to him, XRP offers a quicker, cheaper, and more secure way to move value across borders. He then highlighted Japan’s long relationship with XRP. Specifically, SBI Remit uses XRP for payment routes between Japan and the Philippines and between Japan and Indonesia. Also, Japanese institutions maintain long-running partnerships with Ripple, which gives the theory more weight.

Jackson noted that he had studied BIS documents, Japanese regulatory material, and SBI Remit’s integrations, and confirmed that the major details behind the reverse carry trade storyline all come from established sources. 

He then called attention to discussions over how XRP’s price might react if these flows ran through the asset, with some predicting price surges to thousands. While Jackson does not support any specific prediction, he said Japan’s policy shift, the scale of the unwind, and XRP’s presence in the country create a setup that deserves serious attention.

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