Bank adoption of XRP for cross-border payments could directly impact demand for the asset, according to crypto researcher SMQKE.
In a recent tweet, SMQKE highlighted a Ripple demonstration that explains how financial institutions could use XRP as a bridge asset while expanding international payment capabilities.
The post focuses on two possible ways banks could access XRP for settlement. SMQKE clearly said both approaches could increase demand as payment activity grows across the network.
Banks adopting XRP for cross-border payments will drive up its price.📈
The Ripple demo reveals this adoption path for XRP. 💯
Banks can either hold onto XRP, accumulating the asset, or source it from exchanges, which would boost trading volume.🎯
In either case, the demand… pic.twitter.com/6reUriIgCR
— SMQKE (@SMQKEDQG) September 5, 2026
SMQKE Highlights Two Ways Banks Could Source XRP
“Banks adopting XRP for cross-border payments will drive up its price,” SMQKE wrote, pointing to the Ripple demonstration as evidence of the potential adoption path.
According to the researcher, banks using XRP for cross-border payments could either hold the asset directly or obtain it through cryptocurrency exchanges when they need to complete transactions. In the first scenario, banks would accumulate XRP for their payment operations. In the second, they would source XRP from the market as required.
SMQKE said either approach would increase demand for XRP as the network expands. The researcher therefore connected greater bank usage and higher payment activity with potential increases in market demand.
The video attached to the post explains the mechanism in greater detail. The speaker describes XRP as a digital asset that can facilitate payment settlement and points to its speed, scalability, and cost as factors that make it suitable for cross-border transactions.
The presentation also states that banks could increase their payment volume and reach without establishing additional direct liquidity relationships in every market.
Ripple Demo Highlights XRP Liquidity Role
The speaker further referenced XRP’s trading volume, saying its daily average is higher than that of many exotic currencies. According to the presentation, this liquidity could make XRP suitable for payments involving less-liquid currency corridors.
The demonstration explains that each participating bank could either hold XRP directly or use an exchange to source the asset. Under this arrangement, XRP would function as an on-demand liquidity pool that banks could access when settling payments.
The speaker then described RippleNet as a solution to existing liquidity challenges and characterized the system as more capital efficient.
SMQKE’s post specifically focused on the potential effect of this model on XRP demand. Rather than requiring banks to maintain separate liquidity arrangements for every corridor, the model presented in the video uses XRP as an intermediary asset for settlement.
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Community Comments Reinforce the Demand Argument
XRP HERALD agreed with SMQKE’s interpretation, writing that banks could either hold XRP or source it through exchanges, with both options potentially increasing demand. The account also linked greater network activity with increased pressure on available supply.
Nat Turner focused on the inefficiencies of the existing banking structure. Turner argued that banks currently maintain separate accounts, currencies, liquidity buffers, and collateral across different countries. According to the comment, this structure contributes to trapped capital, duplicated reserves, slower settlement, and foreign-exchange friction.
SMQKE’s post ultimately presents bank adoption as a potential demand driver for XRP, particularly if cross-border payment activity expands and financial institutions increasingly use the asset for on-demand liquidity.
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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