As the global financial system accelerates toward tokenization, a growing debate has emerged around the long-term role of bridge assets. Many market participants assume that the rapid rise of stablecoins will reduce the need for neutral settlement tokens.
However, this assumption overlooks how banks actually manage risk, trust, and liquidity at scale. The deeper the system evolves, the more structural frictions come into focus.
Crypto commentator Jake Claver directly addresses this misconception, arguing that stablecoins may reinforce—not replace—the need for XRP. His perspective centers on the realities of interbank finance, where trust boundaries and balance sheet risk still dominate decision-making, regardless of technological progress.
People think stablecoins reduce XRP's need. Wrong. $27T in Nostro/Vostro accounts could grow to $50T+ because banks won't trust competitors' coins. XRP becomes the neutral bridge.
— Jake Claver, QFOP (@beyond_broke) January 7, 2026
The Persistent Weight of Nostro and Vostro Accounts
Banks currently lock vast sums of capital in Nostro and Vostro accounts to facilitate cross-border payments. These prefunded accounts reduce settlement risk but create enormous inefficiencies by immobilizing liquidity.
Industry estimates place this trapped capital at roughly $27 trillion today, and Claver notes that this figure could exceed $50 trillion as global trade volumes expand and regulatory demands intensify.
Despite advances in blockchain infrastructure, banks continue to rely on this system because it minimizes counterparty uncertainty. Any alternative must address trust as much as speed.
Why Stablecoins Do Not Eliminate the Trust Problem
Stablecoins offer faster settlement and lower operational friction, but they introduce a different challenge. Each stablecoin represents a liability issued by a specific entity. For banks, using a competitor’s or foreign issuer’s stablecoin exposes them to governance risk, regulatory shifts, and redemption uncertainty.
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Claver emphasizes that banks do not operate on goodwill or convenience. They operate on enforceable neutrality. No global institution wants its settlement layer tied to another firm’s balance sheet or policy decisions. As stablecoin ecosystems expand, this lack of universal trust could lead to deeper fragmentation rather than consolidation.
XRP’s Function as a Neutral Settlement Asset
XRP addresses this problem by removing issuer risk from the equation. It does not represent a claim on a bank, government, or private company. Instead, it functions as a neutral bridge asset that facilitates value transfer between currencies without requiring prefunded accounts or bilateral trust.
By using XRP as an intermediary, banks can source liquidity on demand and settle transactions in seconds. This approach directly reduces reliance on Nostro and Vostro accounts while preserving institutional risk standards.
Complementing Stablecoins, Not Competing With Them
Claver frames XRP and stablecoins as complementary components of a larger financial architecture. Stablecoins can efficiently serve domestic and regional settlement needs, while XRP connects fragmented systems across borders. As more institutions issue their own digital currencies, the demand for a neutral bridge increases rather than disappears.
In this context, XRP does not compete with stablecoins for relevance. It solves the problem that stablecoins cannot—global interoperability without trust dependencies. As financial infrastructure grows more complex, neutrality may become XRP’s most valuable attribute.
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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