An XRP community expert has proposed that investors could avoid selling XRP while still generating income. Many market pundits advocate holding XRP rather than selling, arguing that selling can trigger capital gains taxes and reduce long-term exposure; instead, they promote borrowing against XRP to access funds while preserving ownership.
Brad Kimes of Digital Perspectives shared this view after reports surfaced that Ripple developers may be exploring native XRP lending on the XRPL. He notes that native lending would allow XRP to be borrowed, locked, used, and repaid entirely on the ledger, removing the need for third-party platforms and potentially reducing risk.
Kimes describes a system in which each loan stands on its own; borrowed XRP would remain locked for set periods, similar to traditional loans. This dynamic could temporarily reduce XRP supply and support prices as demand grows. He calls the concept a major trust upgrade for banks and payment companies, citing the 2022 collapses of Voyager, Celsius, and BlockFi as cautionary examples of third-party lending risk. The implication is that on-ledger lending could improve safety and reliability by keeping lending within the XRP Ledger.
Under the proposed structure, each borrower’s XRP would sit in a single-asset vault, overseen by a pool administrator or loan manager, with external platforms building user interfaces. This design aims to isolate risk to individual positions and minimize cross-contamination across borrowers. Kimes frames the concept as XRP community’s “holy grail”: never selling XRP. He emphasizes that while he is not providing financial advice, many wealthy individuals reportedly borrow against assets to delay taxes and maintain ownership.
He cites EasyA founder Dom Kwok, who expects volatility to ease over time as markets mature and liquidity improves. He argues that greater on-chain use in payments, settlement, ETFs, and lending could help stabilize XRP prices. As a practical example, Kimes outlines a scenario where an investor posts 10% of their XRP as collateral for a loan, with the proceeds deployed into income-producing assets such as apartment buildings or laundromats. Income from these ventures could service the loan, while remaining earnings would be taxable income; over time, the investor would own both the XRP and the underlying businesses.
Ultimately, borrowers could borrow against those businesses later, leaving XRP untouched. Brad Kimes of Digital Perspectives argues that investors could generate income without selling by borrowing against XRP and keeping ownership intact. Native XRPL lending would allow XRP to be borrowed, locked, used, and repaid entirely on the ledger, reducing reliance on third-party platforms and potentially lowering risk.
In the proposed design, each loan stands alone; borrowed XRP would be locked for a set period. The XRP would sit in a single-asset vault overseen by a pool administrator or loan manager, with external platforms providing user interfaces. This approach isolates risk to individual positions and could temporarily tighten XRP supply, supporting prices as demand grows.
A practical example envisions an investor collateralizing 10% of their XRP for a loan and deploying the proceeds into income-generating ventures such as real estate or other businesses. Income from these ventures could service the loan, while remaining gains stay taxable income; over time, the investor would own both the XRP and the underlying businesses.
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