Ripple May Retain More XRP as Demand for Liquidity Increases
Ripple may retain more XRP from its monthly escrow releases if demand for liquidity increases, according to an SEC filing by Cryptex Finance.
The proposed Digital Market Cap ETF would assign a 4.88% weighting to $XRP, which is part of the underlying index. However, it's unclear whether Ripple has publicly confirmed these plans.
Ripple could use additional XRP to support on-ledger liquidity for stablecoin and foreign-exchange trading pairs, although this claim does not come from a source or date in the filing.
The CLARITY Act remains pending, making any future XRP supply changes uncertain. The Senate Banking Committee advanced the legislation by a 15-9 vote in May, but further congressional action is necessary for final passage.