Ripple is aggressively expanding its presence in traditional finance through high-profile acquisitions like Hidden Road and GTreasury, yet this growth is creating a significant and scrutinized disconnect with the utility of its native token, XRP.
Expansion Conflicts with Token’s Core Purpose
While Ripple’s new services target institutional clients for financial infrastructure and corporate markets, these operations primarily use conventional financial instruments, giving XRP little to no functional role in their core business.
This raises long-standing doubts among analysts: if the company’s business growth relies on traditional finance tools, does it truly support the long-term value and use case of its token?
Structural Reliance on XRP Sales and Limited Utility
Despite promoting XRP as the designated “bridge currency” and “settlement fuel” for its network, Ripple remains financially dependent on periodic sales of XRP from its escrow to fund its operations and provide liquidity. This financial reliance clashes with the vision of the token being purely a utility asset.
A prime example of this disconnect is Ripple’s RLUSD stablecoin. Although its market cap is substantial, nearly 88% of RLUSD’s supply resides on the Ethereum blockchain, not the XRP Ledger (XRPL). This multi-chain preference limits the stablecoin’s impact on XRP’s utility, as transactions on the XRPL—which require and burn small amounts of XRP—are bypassed. This restricted role for XRP in new, major product lines casts doubt on its real-world utility within the expanding Ripple ecosystem.
Treasury Plan Fuels Debate Over Financial Strategy
Adding to the complexity, Ripple recently announced plans to raise $1 billion worth of XRP to establish a digital asset treasury. While supporters see this as a show of confidence and a bid for market stability, critics argue it risks blurring the line between a genuine financial strategy and an attempt to provide price support for the token. This large-scale intervention, they warn, reinforces the perception that Ripple’s financial success is more reliant on XRP market speculation than its use in cross-border settlement.
In summary, as Ripple successfully penetrates traditional finance, the core challenge remains: its expanding business relies heavily on financial structures that currently offer only a limited, practical role for the very token that continues to be its primary source of funding.
October 2025, Cryptoniteuae
