Ripple's Escrow and U.S. Treasury Intervention
Discussions about the potential use of Ripple’s XRP to help reduce the United States’ mounting national debt have resurfaced within the crypto community. Although the concept remains speculative and highly improbable, several analysts and XRP supporters have examined how the digital asset could theoretically assist the government in addressing its $38 trillion debt crisis.
In early 2025, XRP researcher Dr. Horace Drew proposed a hypothetical situation where President Donald Trump might gain control of Ripple’s escrowed XRP holdings and assign them to the U.S. Treasury. According to Drew, the escrow, estimated to hold roughly 35 billion XRP valued at around $200 billion at that time, could potentially serve as a financial instrument for the government.
"How's he gunna do it LOL?" If Trump takes all of the XRP in escrow for the US Treasury (current value $200 billion), then slowly drives the value of XRP up to $500, the total US national debt of $34 trillion will be cancelled.
— Red Collie (Dr. Horace Drew) scientist/inventor (@RedCollie1) January 23, 2025
He speculated that if the government managed the asset strategically, perhaps by supporting policies that elevate XRP’s market value to around $500 per token, it could theoretically generate enough capital to offset a significant portion of the national debt, which stood near $34 trillion when he presented the scenario.
A similar theory emerged from another community commentator known as UtilityFTW, who suggested Ripple could voluntarily transfer its escrow holdings to the government. In his view, integrating RippleNet as a national payment infrastructure could further strengthen this approach, positioning XRP as a tool for high-value settlements and potentially contributing to debt reduction.
Renewed Attention and Trump’s Remarks
The conversation reemerged in October 2025 following remarks by Carl Higbie, a host on Newsmax, who proposed a more active government role. He suggested that the Treasury could invest $1 trillion in XRP to boost its market price, sell portions of the token for profit to pay off part of the debt, and then repeat the process. While such an approach would introduce extreme volatility, Higbie argued that this method could gradually chip away at the nation’s financial burden.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
Interestingly, Donald Trump himself has publicly mentioned the idea of using cryptocurrency to pay off U.S. debt, though his comment appeared partly sarcastic. Still, his statement helped reignite debates over the potential intersection of crypto assets and national fiscal policy.
At present, Ripple’s escrow holds about 35 billion XRP, with an estimated market value of $87.5 billion, based on XRP’s current price of $2.27. When compared with the $38.1 trillion U.S. national debt, equivalent to roughly $111,559 per citizen, the escrow’s worth remains negligible.
Analysts have calculated that for just half of the debt to be covered, the value of the escrow would need to total $19 trillion, which would require XRP to reach approximately $543 per token. To eliminate the entire debt, XRP would have to trade near $1,088, representing an increase of over 43,000% from current levels.
Market Outlook and Expert Predictions
Despite the implausibility of these numbers, several analysts remain optimistic about XRP’s long-term price potential. Rob Cunningham, host of The KWUL Show, recently suggested that strong market inflows, particularly from institutional investors and potential ETF approvals, could push XRP’s value between $200 and $500.
Similarly, projections from Changelly analysts anticipate that XRP might exceed the $500 mark by 2040, driven by broader adoption and market maturity.
Adding to this sentiment, Dom Kwok, founder of Easy A, advised investors to hold their XRP positions long-term, asserting that the token could eventually surpass $1,000 if market and regulatory conditions align favorably.
While the concept of the U.S. government leveraging XRP to erase its national debt remains purely hypothetical, the discussions underscore the growing intersection between cryptocurrency and macroeconomic policy.