- XRP could unlock $1.5 trillion in liquidity from Nostro accounts, boosting U.S. Bitcoin reserves and simplifying financial transactions.
- The SEC’s decision on XRP’s status is critical for its role in government payments and Bitcoin reserve plans, with two implementation paths proposed.
Ripple is making headlines again with a new proposal that could impact the U.S. financial system and the crypto market. The proposal, which has been submitted to the U.S. Securities and Exchange Commission (SEC), suggests that XRP could help unlock $1.5 trillion in liquidity, allowing for large-scale Bitcoin purchases.
A German financial advisor proposes XRP as a strategic financial asset for the US, potentially unlocking $1.5 trillion in liquidity and reducing transaction costs. Big changes ahead if this plan gains traction! 🚀💸 #XRP #Blockchain #Crypto #Finance #SEC https://t.co/R2rleUcvVn pic.twitter.com/CXO1RsF8wu
— Collin Brown (@CollinBrownXRP) March 15, 2025
Maximilian Staudinger, the leader of the proposal, argues that XRP could free up funds currently stuck in Nostro accounts. These accounts, used for international transactions, hold an estimated $27 trillion globally, with about $5 trillion held by U.S. banks. Staudinger believes that XRP could unlock $1.5 trillion from these accounts, which could then be redirected to buy Bitcoin, thus providing a liquidity boost.
In the proposal, Staudinger discusses the possible benefits of using XRP in this capacity, arguing that it could simplify financial transactions and help the U.S. acquire Bitcoin, which is seen as a reserve asset. While the proposal’s scale is enormous, it emphasizes the general goal of making U.S. financial systems more efficient and competitive on the global stage.
The Bitcoin Reserve Vision: Can It Become Reality?
One of the proposals, as reported by ETHNews, claims is that the U.S. could purchase up to 25 million Bitcoin at $60,000 per coin, which would exceed the total available Bitcoin supply. This raises questions about the practicality of such an idea.
However, the proposal suggests that adding XRP into the financial system could save the U.S. up to $7.5 billion annually in transaction fees. It also points to faster and more affordable government payments, such as Social Security and tax refunds, as another major advantage of using XRP.
Despite the questionable Bitcoin claim, the main concept of XRP as a tool for improving financial processes has merit. By leveraging its fast transaction capabilities and low fees, XRP could have a major role in modernizing how the U.S. government handles payments and liquidity.
Regulatory Hurdles and the Path Forward
As noted in our previous post, the SEC has yet to make a final ruling on whether XRP is a security or a payment asset, which limits its use in mainstream financial systems. Staudinger calls on the SEC to officially recognize XRP as a payment asset, which would open the way for its overall adoption within the financial sector.
The proposal includes two implementation approaches. The first, a standard rollout, would take around 24 months and involve regulatory approvals, bank adoption, and integration into government payments.
The second, a fast-track approach, suggests that executive orders and Federal Reserve mandates could speed up the process, completing it within 6 to 12 months. However, the second approach is seen as more risky due to potential pushback from various stakeholders.
