Market Analyst Advises XRP Investors to Hold Onto Their Coins

As interest grows among the XRP community regarding new infrastructure developments on the XRP Ledger, many are focused on the potential for long-term utility and broader institutional adoption. In this context, prominent crypto market commentator Brad Kimes, known on Twitter as Digital Perspectives, reinforced a familiar sentiment that many XRP holders find compelling: “Never sell your XRP.” This remark aligns with upcoming changes related to the XRPL Lending Protocol.

Key Takeaways

Brad Kimes, known as Digital Perspectives, advises XRP holders to retain their coins in light of upcoming changes to the XRPL.
The XRPL Lending Protocol will introduce institutional-grade lending features directly on the XRP Ledger.
This protocol promises structured loan terms and mitigates risks associated with traditional DeFi lending.
Institutions are likely to benefit from undercollateralized lending options, aligning crypto practices with traditional financing.
Real-world applications include market makers, Payment Service Providers, and fintech lenders, with a vote on the protocol scheduled for January 2026.

XRP

Reasons to Retain Your XRP

Digital Perspectives made these remarks in response to a recent post by Ed Hennis, a software engineer at Ripple. Hennis detailed the upcoming XRPL Lending Protocol proposal, which aims to introduce fixed-term, fixed-rate credit options directly within the XRP Ledger. This shift is significant as it transitions lending from a smart contract layer to a standardized, protocol-driven framework governed by validator consensus.

Hennis explained that loans available through the XRPL Lending Protocol will feature structured terms, predictable interest rates, and clear authorizations—characteristics that traditional institutions seek before allocating funds. Consequently, Digital Perspectives’ “never sell” advice reflects a long-term vision where investors hold onto their XRP and utilize them as collateral for loans.

In contrast to typical liquidity pools used by many lending protocols, the XRPL Lending Protocol design ensures that each loan is housed within a distinct Single Asset Vault. This innovative structure helps isolate risk to specific lending facilities, mitigating the cross-contamination issues that have affected numerous DeFi platforms during turbulent market conditions. As such, the XRPL Lending Protocol diminishes execution risk and establishes a framework reminiscent of traditional credit markets, differing from current crypto lending designs.

Practical Uses of the XRPL Lending Protocol

Contemporary decentralized lending platforms often rely on excessive overcollateralization to manage volatility and anonymity risks. While effective for traders, this paradigm proves inefficient for real businesses that rely on predictable cash flows and standardized credit lines. Many enterprises prefer to borrow without needing to secure collateral amounting to more than the actual loan value, a mismatch that has kept several institutions from participating in the crypto space.

The XRPL aims to bridge this gap by incorporating undercollateralized, institutionally backed lending alongside existing overcollateralization models. This advancement broadens the pool of potential borrowers and aligns on-chain credit mechanisms with practical financing practices found in traditional markets.

Hennis highlighted some real-world applications for the XRPL Lending Protocol, including market makers borrowing XRP/RLUSD for inventory and arbitrage opportunities, Payment Service Providers (PSPs) borrowing RLUSD for immediate merchant payouts, and fintech lenders accessing short-term working capital. This feature is expected to be available for validator voting by the end of January 2026, with decisions ultimately resting with the validators on the XRP Ledger.

Once the lending protocol is operational and XRP plays an active role in institutional credit markets, selling XRP at that time could be a mistake.

XRP XRP trading at $1.89 on the 1D chart | Source: XRPUSDT on Tradingview.com