David Schwartz Defends XRP Value as 37 European Banks Advance Stablecoin Plans

Ripple CTO emeritus David Schwartz recently remarked on how a higher XRP price would improve payment liquidity while addressing growing frustration among token holders. He also rejected claims that Ripple has a hidden strategy for increasing XRP’s value.

His statement on November 9 came as XRP traded near USD 1.10 following a market decline. Meanwhile, 37 European banks are developing a euro stablecoin, including two institutions that already use Ripple’s custody technology.

Ripple’s David Schwartz Denies Secret Plan to Boost XRP Price

Schwartz responded to an XRP holder who questioned Ripple’s strategy and asked whether long-term investors could expect better returns. The investor also called on Ripple CEO Brad Garlinghouse to explain the company’s plans.

Schwartz rejected suggestions that Ripple was withholding information about XRP’s future. “We talk about our plans constantly. There’s no secret plan we aren’t telling you about,” Schwartz wrote.

Another holder questioned why XRP had failed to benefit from Ripple’s growing business and the expansion of its RLUSD stablecoin.

Schwartz explained that XRP’s price remains ‘largely dragged around by the market,’ while developments involving the XRP Ledger have a smaller effect. He referred to his January 2023 remarks, when he acknowledged that this assessment reflected his personal judgment rather than a proven relationship.

However, Schwartz maintained that XRP could benefit from wider adoption of the network. He said it was difficult to imagine the XRP Ledger succeeding without XRP capturing a substantial share of that value.

David Schwartz Explains How Higher XRP Prices Improve Liquidity

The discussion also addressed whether XRP needs a higher valuation to support large institutional payments. Schwartz agreed that an increase could improve the token’s usefulness for transferring money.

“The higher the price, the better. A higher price would tend to mean liquidity is more cost-effective and slippage is less,” Schwartz wrote.

A higher valuation would allow institutions to transfer the same amount of money using fewer XRP tokens. However, the cost of executing large transactions would also depend on available buyers, sellers, and market depth.

Schwartz separately addressed whether transaction fees could drive demand for XRP. He rejected the suggestion that using XRP to pay network fees would substantially increase its market value.

Instead, he pointed to XRP’s role within the ledger and its ability to function without an issuing counterparty. He also reiterated his expectation that broader network adoption could benefit the asset, without providing a price target.

Ripple Custody Links Two Banks as 37-Plan Euro Stablecoin Launch

Meanwhile, European banking consortium Qivalis is preparing to introduce a regulated euro-denominated stablecoin. The group includes 37 financial institutions across 15 countries, including BBVA, DZ BANK, ING and BNP Paribas.

Qivalis announced on October 14 that it had secured authorization from the Dutch central bank to operate as an electronic money institution. Two consortium members already maintain custody relationships with Ripple.

BBVA signed an agreement with Ripple in September 2025 to support digital asset custody services in Spain. DZ BANK also uses Ripple’s technology to manage institutional digital assets, including tokenized securities.

However, these existing relationships do not establish that all 37 banks use Ripple or that Qivalis has selected XRP for payments. No consortium-wide Ripple custody agreement has been announced.

Qivalis plans to distribute its euro-backed token through eligible banks, exchanges and payment providers. The consortium expects issuance in the coming months, subject to remaining European Union regulatory requirements and publication of its white paper.

Also Read: Goldman Sachs, Citi & Deutsche Bank Back USD 270 Million Stablecoin Project Targeting 2027 Launch