Versan Aljarrah, co-founder of Black Swan Capitalist, recently emphasized a critical evolution in global financial operations. In a post on X, he pointed to XRP and RLUSD as mechanisms that could reshape how value moves across borders.
Aljarrah pointed out that banks currently hold capital in Nostro/Vostro accounts, but XRP eliminates this requirement, which many now see as a fundamental inefficiency in the traditional banking system. He then added that RLUSD can tokenize collateralized debt, and these tokenized treasuries could significantly transform sovereign debt markets.
Banks hold capital in Nostro/Vostro accounts — XRP eliminates that friction.
Governments collateralize debt with treasuries — RLUSD tokenizes it. Now imagine this entire system operating 24/7 across borders. pic.twitter.com/BRqHvEzaNB
— Versan | Black Swan Capitalist (@VersanAljarrah) May 19, 2025
The Role of XRP in Streamlining Cross-Border Settlements
The traditional international banking system relies on Nostro and Vostro accounts, where correspondent banks hold foreign currency balances to facilitate cross-border transactions. This system often results in idle capital and slow settlement times.
XRP functions as a bridge asset that enables real-time settlement between currencies. It allows institutions to avoid pre-funding accounts in foreign currencies, thus reducing capital lockup and operational delays.
Ripple’s On-Demand Liquidity (ODL) system, which utilizes XRP, is already employed worldwide to simplify and accelerate cross-border transfers. The core advantage is XRP’s ability to settle transactions in seconds, offering near-instant finality. This addresses a long-standing issue in the global financial system, where delays in settlement can lead to counterparty risks and liquidity inefficiencies.
Tokenizing Treasuries with RLUSD
Governments traditionally issue treasuries to finance debt, and these instruments are widely used as collateral in financial markets. However, access to them, particularly across borders and outside regular trading hours, remains constrained by legacy systems.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Aljarrah suggests that RLUSD could tokenize U.S. dollar-denominated assets, such as treasuries, onto blockchain infrastructure. Ripple is making strides in the tokenization market, as real-world asset tokenization could bring significant growth to the crypto space.
By tokenizing treasuries, RLUSD could become more than just a stable digital representation of the U.S. dollar, but serve as a programmable, on-chain instrument backed by sovereign-grade assets. This could open new pathways for collateralization and liquidity management in decentralized finance (DeFi) and institutional markets.
The Future of Global Finance
XRP and RLUSD illustrate Ripple’s vision for a borderless, always-on financial system. XRP removes the inefficiencies of pre-funded accounts in foreign currencies, while RLUSD introduces tokenized, liquid collateral that can be moved and settled around the clock.
Some analysts believe tokenization is just the start, and with these assets, Ripple could play a major role in global finance in the coming years.
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.
Follow us on X, Facebook, Telegram, and Google News
