Ripple Is Closing Bank Deals Every Week: Why XRP Holders Aren't Seeing the Benefit

Ripple has formed multiple major banking partnerships, including large financial institutions and payment networks. Ripple’s offerings include RippleNet for messaging, RLUSD as a dollar-pegged stablecoin, and On-Demand Liquidity (ODL) as the service that uses XRP for cross-currency settlement. Across recent deals, the infrastructure benefits are tied mainly to RippleNet and RLUSD, while XRP is not required for those flows. Institutions prefer settling with a dollar-pegged stablecoin rather than a volatile token when both perform the same function. Ripple also releases up to 1 billion XRP from escrow monthly, using only a portion and relocking the rest, which can add supply pressure. Any buying from partnerships can be absorbed by market selling of newly released XRP.

"Ripple's product lineup has three layers. There's RippleNet, the messaging infrastructure that connects banks. Then, there's RLUSD, Ripple's dollar-pegged stablecoin. Coming in last is Ripple's On-Demand Liquidity (ODL) service, the only product that actually uses XRP as a settlement asset, converting one currency into XRP, moving it across the XRP Ledger in seconds, and converting it into the destination currency on arrival."

"Across all ten deals, Ripple's infrastructure benefited greatly, while XRP didn't benefit from any of them. When the choice is between settling in a volatile token and settling in a dollar-pegged stablecoin that does the same job, every company picks the stablecoin. Ripple built RLUSD to attract institutions and it worked. That created a problem where every institution that settles in RLUSD doesn't need to use XRP at all."

"Additionally, Ripple unlocks up to 1 billion XRP from escrow every month, a release schedule set in 2017. Of that volume, Ripple typically uses 100 to 300 million XRP for operations, institutional sales, and ODL liquidity, then relocks the rest. Even in months where operational use is high, hundreds of millions of fresh XRP tokens enter potential circulation."

"All that fresh XRP eventually gets sold into the market, which absorbs any buying thatRipple's deals might bring in. Even with strong partnership momentum, the settlement preference for RLUSD and the ongoing supply flow can outweigh demand effects tied to institutional adoption."

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