Versan Aljarrah, founder of Black Swan Capitalist and a well-known voice in the crypto community, has sparked debate with a recent X post. He declared that he will not use XRP as collateral until what he calls “institutional suppression” ends.
His remarks highlight an important intersection of market structure, liquidity, and regulatory clarity in the evolving XRP ecosystem.
Why Aljarrah Is Holding Back
Aljarrah argues that large institutional players quietly “shake out” retail investors, depressing prices and controlling market depth. In his view, these tactics suppress XRP’s true value and make it risky to lock the asset as collateral.
Collateralization requires predictable liquidity and fair market behavior, conditions Aljarrah thinks are currently lacking, making it challenging for XRP to be widely accepted as dependable collateral. For him, the decision is not about the technology behind XRP but about trust in the market itself.
I’ll only use #XRP as collateral once the institutional suppression ends. Big players are shaking out retail, but when real demand hits, XRP’s liquidity and scarcity will create intense upward pressure. Timing is everything. https://t.co/Us4aIGh5hk
— Black Swan Capitalist (@VersanAljarrah) September 16, 2025
XRP’s Scarcity and Potential Price Pressure
XRP’s supply dynamics support Aljarrah’s caution. The cryptocurrency has a fixed cap of 100 billion tokens, with roughly half in circulation. When demand eventually outpaces this limited float, upward price pressure could be significant.
Aljarrah contends that once “real demand” emerges—when institutions and large-scale payment systems need XRP for settlement—the resulting scarcity will drive rapid price appreciation. Using XRP as collateral before that point, he warns, would expose holders to unnecessary downside while giving institutions the upper hand.
Institutional Demand on the Horizon
Ripple’s ecosystem is expanding in ways that could eventually meet Aljarrah’s criteria. Ripple’s introduction of the RLUSD stablecoin in December 2024, coupled with the expansion of on-ledger tokenization pilots, has opened up new avenues for utility and liquidity, potentially boosting the ecosystem’s overall functionality and appeal.
If these enterprise-grade products accelerate adoption, they could transform speculative interest into sustainable transactional demand. Such growth would strengthen the case for XRP as reliable collateral. However, this depends on whether market dynamics become more transparent.
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Legal and Regulatory Clarity
Legal certainty remains another factor. The long-running Ripple versus U.S. Securities and Exchange Commission case reached final closure this summer, with both parties withdrawing appeals.
While this outcome eliminates a major cloud over XRP’s status, institutional lenders still look for continued regulatory stability and robust risk frameworks before pledging high-value crypto assets as collateral.
Market Signals to Watch
On-chain data shows periodic whale accumulation and sudden liquidity shifts—exactly the type of market behavior Aljarrah describes as “suppression.” Until indicators suggest more consistent and decentralized activity, institutions are likely to remain cautious about accepting XRP as reliable collateral, reflecting ongoing concerns about its stability and market behavior.
Outlook
Aljarrah’s position underscores the difference between XRP’s technological readiness and market readiness. The token already offers fast settlement and a capped supply, but widespread collateral use requires transparent liquidity, diminished institutional manipulation, and lasting regulatory clarity.
Until those conditions align, the Black Swan Capitalist founder says he will keep holding his XRP rather than pledging it—waiting for the moment when demand surges and the market finally reflects what he views as the asset’s true value.
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 urged to do in-depth 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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