If You Hold XRP, This Crucial Advice is for You

Jake Claver, CEO of Digital Ascension Group, has outlined a framework for converting crypto holdings, specifically XRP, into a sustainable, long-term source of income for families. His commentary shifts the focus from short-term trading and speculative exits to planning, tax efficiency, and wealth preservation strategies that allow holders to retain exposure while generating cash flow.

Claver begins by stressing the importance of having a concrete plan before prices surge. He observes that many retail investors keep tokens on exchanges and liquidate positions as soon as targets are hit, often incurring large tax bills and spending windfalls without a long-term strategy. By contrast, disciplined planning can preserve capital and enable ongoing income generation while allowing the underlying asset to appreciate further.

Leveraging Institutional Lending

A central element of Claver’s approach is borrowing against appreciated crypto rather than converting it to fiat. Institutional-grade crypto lending markets now permit qualified borrowers to use digital assets as collateral and obtain cash without triggering taxable events from sales.

Claver suggests that investors who expect a substantial valuation increase can borrow a conservative percentage; he cites an example of borrowing roughly 30% against a position to access funds for living expenses, investment, or business needs. Properly structured, this method preserves the growth potential of the collateral while providing liquidity.

Tax and Legal Structures

Claver warns that holding sizable crypto balances in an individual’s personal name exposes assets to tax events, litigation risk, and estate complications. He recommends establishing appropriate legal entities, such as properly administered limited liability companies or trusts, and, when applicable, using institutional custody solutions.

These measures can provide creditor protection, clearer succession planning, and easier onboarding with banks and service providers that service high-net-worth digital portfolios. He cautions that improperly maintained entities (for example, co-mingling personal and entity funds) can void protections and create additional legal exposure.

For individuals or families with material crypto exposure, Claver recommends operational controls typically used by institutional investors. These include multi-signature custody, independent audit trails, segregation of duties, and working with custodians that provide insurance and compliance reporting. He also advises building relationships with financial institutions that understand digital assets so that lending and banking needs can be met without friction.

Accessing Liquidity Without Selling

To illustrate, Claver uses a hypothetical; an investor holding 10,000 XRP at a future $100 price would nominally hold $1,000,000 in value. Rather than liquidating, the investor could protocol a loan for a portion of that value, say $300,000, using the XRP as collateral. The loan proceeds could be allocated to living costs, investments that produce income, or business opportunities, while the XRP position remains intact and continues to participate in any further upside. Interest payments and loan structure determine the net cash flow. The key advantage is avoiding a taxable sale that permanently reduces exposure.

Claver also outlines the risks. Borrowing against volatile collateral requires margin management and contingency plans for price declines. Lenders may demand additional collateral or liquidate positions if values fall below maintenance thresholds. Legal structures and custody arrangements have costs and administrative requirements. He stresses that such strategies are not suitable for all holders, particularly small retail positions, and recommends seeking competent legal, tax, and financial advice before implementation.

Claver argues that the difference between a one-time windfall and enduring family wealth is strategy and execution. Investors who prepare legal structures, adopt institutional-grade custody, and use lending facilities responsibly can potentially access ongoing liquidity without selling their core holdings. For those seeking to convert crypto gains into sustained financial security, the emphasis should be on preservation, tax efficiency, and controlled leverage rather than immediate monetization.