Crypto pundit and investor Xaif has outlined a structural argument for how RLUSD could materially influence XRP’s market valuation. His focus is not on speculative narratives but on transaction mechanics, liquidity behavior, and institutional settlement flows.
The explanation presents RLUSD as more than a stable asset—it is positioned as a functional tool that could alter how large-scale XRP acquisitions take place.
RLUSD as a Settlement Medium for Institutions
According to Xaif, the primary impact of RLUSD comes from its role in enabling institutions to acquire XRP without using traditional fiat pairs. By operating through a USD‑pegged stable asset, institutions would gain the ability to execute high‑volume purchases efficiently and without exposure to conversion delays or fiat volatility.
This direct pathway, he argues, simplifies the acquisition process and allows significant capital to move through a single, stable channel designed for settlement purposes.
In contrast to conventional trading pairs, RLUSD provides immediate liquidity for XRP transactions within Ripple‑supported environments. This positions it as an operational instrument rather than a speculative token, intended to streamline institutional entry into XRP markets.
THIS IS HOW $RLUSD WILL DRAMATICALLY INCREASE THE PRICE OF $XRP.
pic.twitter.com/dfaWzBmE1c
— Xaif Crypto
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(@Xaif_Crypto) October 10, 2025
Order-Book Mechanics and Price Acceleration
Xaif’s core claim centers on how RLUSD‑driven transactions could interact with exchange order books. When an institution deploys RLUSD to purchase XRP, it begins clearing available sell orders from the lowest price levels upward.
If liquidity at these lower bands is thin, large buy orders would rapidly exhaust them, causing the market price to adjust to the next available range. This is framed as a mechanical outcome of concentrated demand meeting limited supply, rather than a reaction to sentiment.
He explains that such activity could establish new price baselines once previous sell zones have been removed. The upward movement is not gradual in this scenario—it results from a direct depletion of available liquidity at key price points.
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Institutional Example: The $1 Billion Acquisition Scenario
To illustrate, Xaif presents a scenario in which a bank deposits $1 billion into RLUSD and proceeds to acquire XRP. In a simplified order book showing XRP offered at $0.50, $1.00, and $5.00, the institution’s order would absorb the lower prices entirely.
As it moves upward through diminishing supply, purchasing would continue into higher tiers, potentially establishing prices, such as $5.00, as the new market standard.
Xaif uses this scenario to demonstrate how institutional demand at scale would no longer engage with XRP in fragmented increments but through decisive, deep liquidity movements facilitated by RLUSD.
Ongoing Utility and Feedback Effect
The analysis also stresses that institutional purchasing through RLUSD is not a one‑time event. Once XRP is acquired, it could then be used for international settlements, reinforcing its role as a functional asset rather than a tradable commodity. RLUSD remains central in this cycle, enabling consistent transactions and reduced operational friction.
This repeated use creates a feedback effect: settlement utility encourages holding and usage, while continued acquisition diminishes lower‑level liquidity, supporting sustained higher price levels over time.
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.