Finance Expert: XRP Doesn’t Need to be Backed By Gold, It Just Needs to Move It

In a powerful post shared on X, finance strategist Versan of Black Swan Capitalist delivered a compelling argument: “XRP doesn’t need to be backed by gold. It just needs to move it.”

His statement reframes the digital asset’s utility, not as a store of value, but as the infrastructure that enables the seamless transfer of tokenized commodities such as gold, oil, and other real-world assets (RWAs) on the XRP Ledger (XRPL).

XRP’s Role as a Bridge

XRP was never designed to be a commodity-backed asset. Instead, its value lies in its core functionality, as a liquidity bridge that facilitates the instantaneous settlement of transactions across diverse assets. As Versan explained, when gold-pegged stablecoins live on XRPL, XRP serves as the connector that allows them to move efficiently across borders and between institutions.

This transactional capability synthetically links XRP to the very assets it helps transfer, whether gold, oil, or tokenized fiat currencies, without the need for collateralization. XRP doesn’t need to be backed by gold to become indispensable in a system built around gold-backed digital assets.

Explosive Growth in Real-World Asset Tokenization

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The data support Versan’s thesis. As of report time, tokenized real-world assets on XRPL have surged by over 2,200% in six months, from under $5 million in January to more than $118 million today. The Total Value Locked (TVL) has surpassed $92 million, and the ledger’s stablecoin market cap now exceeds $93 million.

This rapid growth highlights increasing institutional confidence in the XRPL ecosystem, which offers high throughput, low fees, native decentralized exchange (DEX) functionality, and built-in compliance tools. Each of these features positions XRPL as an ideal environment for tokenizing and transferring assets traditionally considered illiquid or jurisdiction-bound.

Gold-Pegged Stablecoins and XRP’s Synthetic Link

With more entities issuing gold-backed or commodity-pegged stablecoins on XRPL, XRP is poised to become the key infrastructure for global asset transfers. This relationship effectively makes XRP synthetically linked to the underlying assets it facilitates

Whenever a user or institution transacts with a gold-pegged stablecoin, say, to settle a cross-border trade, XRP is often the intermediary asset that ensures liquidity and speed. Versan emphasizes that this function gives XRP strategic value beyond speculation. It transforms XRP into a utility asset embedded in the infrastructure of tokenized value exchange.

Strategic Implications for XRP’s Adoption

This paradigm shift holds deeper implications. Governments and financial institutions could tokenize sovereign assets or commodities, such as gold, to back new types of debt instruments or monetary frameworks. In such a system, XRP could emerge as the primary liquidity layer supporting global transactions between tokenized national currencies, precious metals, or energy commodities.

Ripple’s USD-backed RLUSD stablecoin, as well as other institutional-grade tokens like EURØP, XSGD, and USDB, already live on XRPL. These assets form the foundation of a growing tokenized economy, one that will increasingly rely on XRP’s bridging capabilities as it scales.

XRP’s Value Is in What It Moves

Versan’s insight redefines how we assess XRP’s relevance in today’s tokenization wave. XRP does not need to be backed by gold to derive value from it. Its worth lies in being the neutral, trusted intermediary that enables tokenized gold, and any other asset, to move freely and efficiently across a global, interoperable ledger.

In the era of digital commodities and regulated stablecoins, XRP’s role as the connective tissue of the financial system may prove more vital than ever.

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 urged to do in-depth 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.*