A new theory about XRP’s market potential is gaining attention ahead of the Senate markup of the CLARITY Act on Thursday, May 14, 2026, at 10:30 AM ET. XRP community member and developer Vincent Van Code argues that clearer regulations could shift XRP Ledger liquidity from a speculative idea into a real institutional market structure. The key question is whether legal protection for digital assets would allow major banks and payment networks to use XRPL liquidity pools on a large scale.
In a post on X, Van Code described the upcoming markup as a possible turning point for XRP’s use by institutions. He sees the legislation not just as another policy step, but as the missing legal framework that would let large regulated financial firms engage more directly with on-chain settlement systems.
Why XRP Needs $10 for Bank-Scale XRPL Liquidity
“The digital asset market has been in beta for a decade. This Thursday, May 14, 2026, the CLARITY Act Senate markup offers the final legal gateway for global systemically important banks (G-SIBs) to move trillions from static Nostro accounts onto the XRPL. By converting Ripple’s 40 billion+ escrow into protocol-native liquidity pools, we’re seeing a structural shift in XRP’s value—from a speculative token to high-velocity collateral.”
The core idea is that Ripple’s XRP escrow, long seen by traders as a potential source of future sell pressure, could instead become a strategic liquidity reserve if placed into automated market maker pools. Van Code calls this “the mechanical flip,” suggesting that escrowed XRP could be used to create deep liquidity pools for institutional transactions, rather than just entering the circulating supply through sales.
Under his scenario, the CLARITY Act would give banks the legal protection they need to interact with XRP Ledger-based liquidity. Ripple could then deposit between 5 billion and 10 billion XRP from escrow into pools like RLUSD/XRP, EURCV/XRP, and JPY/XRP. This, he argues, would create a stronger base of bridge liquidity and a more robust market structure for large transfers.
“For years, Ripple’s escrow was seen as a ‘sell pressure’ problem. In a post-CLARITY world, it becomes a liquidity feature. The trigger: CLARITY Act passes → Banks get legal safe harbor.”
Van Code links this theory to four institutional corridors already forming around XRPL-compatible settlement flows: RLUSD for US dollar treasury and B2B activity, EURCV from Societe Generale for European institutional settlement, JPY-related corridors involving SBI and Kiraboshi, and OUSG from Ondo as yield-bearing collateral. He also mentions Mastercard and Societe Generale as examples of participants already connected to on-chain infrastructure, arguing that the missing piece is liquidity depth, not connectivity.
The most striking part of the theory is the price logic. Van Code argues that bank-scale settlement requires pools large enough to handle major transfers without significant slippage. For example, moving $100 million in a single block with less than 0.1% slippage would need about $20 billion in total value locked. That assumption leads to his $10 XRP scenario. At a price of $1.47, he says, the major pools would require around 18 billion XRP, which he calls mathematically impractical due to liquidity limits. At $10, however, the same liquidity base would need roughly 2.7 billion XRP—a level he sees as more sustainable for institutional use.
“The price doesn’t hit $10 because of hype; it hits $10 because the total value locked must scale to handle Mastercard and bank volume,” he wrote.
At press time, XRP was trading at $1.46.
Featured image created with DALL.E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about the potential for XRP to reach 10 specifically in relation to the CLARITY Act and its potential impact on the XRP Ledger
BeginnerLevel Questions
1 Wait what is the CLARITY Act
Its a proposed US law that aims to create clear rules for digital assets specifically clarifying that many cryptocurrencies are commodities rather than securities This would remove a lot of legal uncertainty for banks and big companies using XRP
2 How does a law help XRP reach 10
Right now banks are scared to use XRP because they dont know if it will be regulated like a stock The CLARITY Act would give them a legal green light If banks feel safe they might start using the XRP Ledger for massive realtime payments More demand for a limited supply of XRP usually pushes the price up
3 Isnt 10 a huge jump XRP is under 1 right now
Yes its a big jump For XRP to hit 10 the total market value would need to be over 500 billion Thats why this theory relies on institutional usebanks moving billions of dollars daily It wouldnt happen just from regular people buying
4 What is liquidity on the XRP Ledger Why does it matter for banks
Liquidity means there is enough XRP available to buy and sell instantly without moving the price too much Banks need massive liquidity to settle huge payments in seconds The idea is that the CLARITY Act would incentivize market makers to provide that liquidity making XRP useful for banks
AdvancedLevel Questions
5 How specifically does the CLARITY Act create largescale liquidity
The Act would classify XRP as a commodity This means banks and hedge funds can hold XRP on their balance sheets without facing strict securities regulations With legal clarity these institutions can act as liquidity providers parking billions of dollars in XRP to facilitate crossborder payments for other banks earning fees in the process
6 Isnt 10 mathematically impossible based on market cap
Not impossible but extremely difficult A 10 XRP implies a market cap of 530B For context