Crypto researcher SMQKE has pointed to liquidity as a key reason banks could use XRP for cross-border payments. The researcher cited documents discussing RippleNet and XRP’s role in moving value between currencies, then compared those capabilities with a separate statement that directly acknowledges the limits of banking resources.
“Remember: XRP gives banks access to UNLIMITED liquidity for cross-border payments,” SMQKE wrote. The researcher then added, “Meanwhile, ‘no bank has UNLIMITED resources.’” SMQKE used the two statements to explain the liquidity problem that XRP can address in international payments.
The documents attached to his X post compare and focus on how financial institutions can access liquidity when moving funds across different currencies and markets.
Remember:
XRP gives banks access to UNLIMITED liquidity for cross border payments.✅
Meanwhile, “no bank has UNLIMITED resources.”🔻
That is the liquidity problem XRP was designed to address.💯
Documented below.📝👇 pic.twitter.com/cbDvgeXyA7
— SMQKE (@SMQKEDQG) September 21, 2026
RippleNet Uses XRP As A Digital Asset
One attached excerpt features Graham Bright discussing Ripple’s ecosystem and its On-Demand Liquidity capabilities. Bright explains that RippleNet clients can use XRP as the underlying digital asset when they switch between their local currencies.
The document says supply and demand for liquidity can become “effectively almost unlimited.” It also explains that clients can switch in and out of XRP almost immediately. According to the excerpt, this process can reduce several risks that companies face when they rely on traditional foreign-currency transactions in developing markets.
Bright also describes how Ripple’s ecosystem can give trading companies access to currency corridors without relying entirely on traditional correspondent banking relationships. The document notes that major banks can use the ecosystem and that participants can operate outside the SWIFT network.
These details support a specific point SMQKE makes about XRP and liquidity. Instead of requiring a financial institution to maintain direct access to every currency involved in a transaction, the model uses XRP to facilitate movement between currencies.
Banks Face Resource Limitations
The second document provides the other side of SMQKE’s comparison. The document says, “No bank has unlimited resources.” The surrounding discussion addresses the resources banks need to support major payment infrastructure projects, including SWIFT’s ISO 20022 migration, FedNow and Fedwire’s ISO 20022 implementation.
The statement shows a basic limitation within traditional financial infrastructure. Banks must allocate employees, technology, and other resources across multiple payment systems and operational requirements.
SMQKE places that limitation next to the RippleNet material to explain why liquidity access matters for cross-border payments. The researcher’s post presents XRP as a digital asset that can help financial institutions access liquidity across currency corridors without requiring each bank to hold unlimited resources.
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XRP’s Intended Role In Cross-Border Payments
SMQKE concludes the post by connecting the two documents directly: “That is the liquidity problem XRP was designed to address.”
The attached material focuses on XRP’s use within Ripple’s On-Demand Liquidity model rather than XRP’s market price. It describes a system that uses XRP to facilitate currency conversion and cross-border settlement while reducing reliance on traditional correspondent banking arrangements.
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 advised to conduct thorough 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.
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