Vandell Aljarrah, co-founder of Black Swan Capitalist, has triggered fresh debate in the financial world after suggesting that XRP could be used to back U.S. government bonds. According to his post on X, Aljarrah envisions a model where the U.S. Treasury issues debt instruments denominated in XRP instead of traditional fiat bonds.
XRP bondholders would directly purchase XRP from the government and then receive annual returns based on XRP or dollar options before redeeming the bond after it matures. Using blockchain technology, the idea aims to achieve operational efficiency and transparency in sovereign debt markets.
The implementation of this concept faces significant barriers to progress. XRP’s unstable price movement continues to be a fundamental problem that prevents it from meeting the requirements for sustaining long-term debt issuance.
Under current U.S. regulations, XRP lacks the legal classification of reserve asset status, which makes the cryptocurrency unfit for public finance applications.
XRP-backed bonds.
Imagine the U.S. government issuing XRP as a debt instrument instead of bonds. Investors buy XRP from the Treasury & earn a yield, just like with government bonds, but in a digital format.
For example a fixed yield (e.g., 2% annually paid in USD or XRP) &…
— Vandell | Black Swan Capitalist (@vandell33) May 2, 2025
Also Read: Expert Says XRP is on the Brink of Biggest Breakout Ever – Here’s Why
Community Reacts as Speculation Builds Around XRP’s Future Role in Finance
Aljarrah’s proposal has gained traction online, prompting reactions from within the crypto community. Many users expressed cautious optimism while acknowledging the complexities involved.
One user, @stgo214, noted, “Exactly…the concept is wild but not out of reach. XRP must be treated as a stable, trusted asset, almost like a digital reserve currency. We’re talking post-collapse or post-reset scenario where new frameworks emerge.”
Another community member, @Allenhelo11, added, “It could function in many ways, such as collateral, debt instruments, backing assets, etc. This is why any price prediction is moot. A capped supply of a function utility that solves multiple problems upon deployment.”
While some supporters see XRP’s potential as a multi-functional asset, others emphasize the need for structural change in the global financial system before such ideas can be realized.
According to Aljarrah, the fundamental transformation of traditional bond markets represents a necessary condition for governments to seriously consider XRP-backed debt.
Similar discussions about Bitcoin are currently at the forefront of ongoing debate. U.S. bond strategists Andrew Hohns and Matthew Sigel suggest adding Bitcoin to bond strategies, but their recommendations have not received final approval.
Conclusion
Although Aljarrah’s proposal is speculative, it has ignited serious discussion about the future role of digital assets in sovereign finance. XRP’s path toward government bond backing remains uncertain but not entirely dismissed.
Also Read: Crypto Expert Warns XRP Price Is Overvalued, Says Hype Is Driving Its Price
