XRP's Bridge Currency Hopes Hinge on Liquidity Threshold

Web3 investor Jake Claver has outlined what XRP needs to become a reliable bridge currency between banks for large settlements. According to him, a $50 million transaction between two banks requires enough liquidity in the pool to absorb the volume 'without moving the price.' This requirement is tied directly to Ripple's business model.

Ripple doesn't just want XRP to be valuable; they need it to be. Claver explained that institutional adoption helps the network scale, which is good news for token holders. However, he noted that XRP can't be cheap because heavy use would deplete available supply quickly.

Claver's example of a $50 million transaction highlights the liquidity requirement needed for XRP to work as a bridge currency between two banks settling such a large transaction. He also questioned why institutions wouldn't just use RLUSD instead of XRP, arguing that XRP isn't settling transactions today.