Crypto analyst Crypto X AiMan recently highlighted archived remarks from Greg Kidd regarding the future potential of XRP. Greg Kidd, known for being among the first ten employees at Ripple and its early chief risk officer, holds an option on 1% of the total XRP supply, which is equivalent to roughly 1 billion tokens. According to Crypto X AiMan, Kidd has the ability to exercise this option at a price near $0.003 per XRP.
The global liquidity challenge
Kidd emphasized the magnitude of global liquidity immobilized in the banking system. Approximately $30 trillion remains locked in nostro and vostro accounts worldwide. These accounts are used by banks to pre-fund currency reserves, ensuring that cross-border transfers settle efficiently. However, Kidd describes these dormant funds as “a dead weight drag on society.”
Ripple developed XRP to address this problem by facilitating transaction settlements in as little as three seconds, with fees less than a penny per transfer. This rapid settlement capability enables banks to free up much of the capital traditionally tied up in various fiat currencies held across the globe. Kidd asserted that the need for nostro and vostro liquidity “is going to be replaced by XRP.”
Greg Kidd maintains that global nostro and vostro liquidity, currently estimated at $30 trillion, is likely to shift to XRP if Ripple’s system continues to gain momentum in traditional finance.
Crypto X AiMan calculated the potential implication: if XRP is adopted to absorb liquidity from these accounts, an enormous $30 trillion could move into XRP. Kidd views this as only the first use case for the token.
Mini dictionary: Nostro and vostro accounts are special bank accounts used for cross-border transactions where banks hold money in foreign currencies at other banks, often to make international transfers smoother and faster.
Bank adoption and institutional entry
Kidd pointed out that mainstream banks have been slow to embrace new technologies for cross-border settlement. He notes that banks are “very far back on that curve,” while money transmitters such as MoneyGram acted much sooner. He also referenced that some global banks started using XRP in limited internal transfers between their own subsidiaries, bypassing traditional correspondent banking structures.
He remarked that industry-wide adoption by banks is “still very, very early,” but anticipated broader institutional involvement over the coming years. Data cited by Crypto X AiMan indicates that institutional interest in XRP has grown in recent years, supporting Kidd’s view of developing momentum.
Kidd said institutional XRP adoption is in its early stages, but the growing interest from banks and payment firms signals that change is underway.
Demand, fixed supply, and use cases
XRP was created with a maximum supply of 100 billion tokens, and its supply cannot increase further. Kidd drew a comparison between XRP and Bitcoin, in terms of fixed supply dynamics. Just as institutional accumulation of Bitcoin can drive price appreciation, every financial institution holding XRP for liquidity needs adds upward pressure, since supply remains capped.
Crypto X AiMan observed that addressing the nostro and vostro account use case is only the beginning. Other demand catalysts for XRP include central bank digital currencies (CBDCs), AI-powered technologies, and increased global payment traffic.
Kidd said he joined Ripple after he recognized its ambition to create “a universal ledger, one ledger for all the value in the world.” He continues to believe that wider adoption of XRP is still in its early stages, and that the sheer size of the opportunity is significant.
| Use Case | Impact on XRP Demand |
|---|---|
| Nostro/Vostro replacement | Potential $30 trillion liquidity shift |
| Institutional settlements | Increased utility for large-value transfers |
| CBDCs, AI, payment growth | Additional demand for token usage |
Ripple is a US-based technology company founded in 2012, focused on providing real-time settlement solutions and cross-border payment infrastructure for financial institutions. XRP is the digital asset at the core of Ripple’s payment network.
