XRP as a Strategic Asset

A recent five-page proposal submitted to the U.S. Securities and Exchange Commission’s Crypto Task Force is causing a stir in the crypto world. This document outlines an ambitious plan to designate XRP as a strategic asset for the United States. Written by Maximilian Staudinger, it claims XRP could revolutionize cross-border payments, unlock funds from Nostro accounts, and establish a new template for financial innovation.

Inside the Proposal for XRP

The proposal contends that XRP could replace a significant share of the liquidity currently trapped in global Nostro accounts. It points out that nearly $27 trillion of these funds are held worldwide, including $5 trillion in the U.S. By using XRP, up to 30% of that sum might be freed, potentially injecting $1.5 trillion back into the economy. Proponents say this would help banks streamline operations and slash foreign exchange costs.

Unlocking Nostro Accounts

Staudinger’s plan imagines XRP serving as a backbone for cross-border transactions. Banks traditionally keep large reserves in these Nostro accounts to ensure they can settle trades quickly. If XRP takes their place, those funds no longer sit idle. This efficiency boost, says the proposal, might spur new investments and economic growth across the country.

However, the proposal goes a step further. It suggests part of these unlocked funds could fund a national Bitcoin reserve. Critics immediately flagged that as unrealistic, noting there are only 21 million BTC in total supply—less than the 25 million BTC the plan envisioned buying at $60,000 each.

Regulatory Implications and Community Reactions

Realizing XRP as a strategic asset would require sweeping legal changes. The proposal calls for an executive order from the President that directs agencies like the SEC, Treasury, and Department of Justice to classify XRP as a payment asset. This measure aims to settle the long-running SEC lawsuit against Ripple, which claims XRP was sold as an unregistered security.

Potential Legal Overhaul

Another key recommendation involves mandating banks to use XRP in place of traditional Nostro accounts. The Federal Reserve and Office of the Comptroller of the Currency would need to support this directive. Observers note that such regulations would drastically reshape financial infrastructure. Unsurprisingly, not everyone welcomes these ideas. Many see them as overreaching or simply unrealistic.

Skeptics say the plan overlooks basic market realities. Even if XRP gains some traction, it’s unlikely to replace trillions in locked capital overnight. Bitcoin Magazine’s Frank Corva also questions why the U.S. would choose XRP when a large portion of the token supply is still held by its issuing organization, Ripple.

Though the SEC has published the proposal on its site, it does not reflect an official stance. Instead, it’s an open submission for public consideration. Despite its ambitious scope, the plan demonstrates growing interest in harnessing blockchain technology to modernize legacy financial systems. Whether or not the U.S. adopts such dramatic measures, it’s clear that XRP’s role in the evolving crypto landscape remains a hotly debated topic. For now, the SEC’s next moves—and how Ripple’s ongoing legal battle unfolds—will determine just how strategic XRP truly becomes.