Schwartz Urges Higher XRP Price as 37 European Banks Adopt Ripple

Ripple CTO Argues Higher XRP Price Could Boost Network Efficiency

David Schwartz, Chief Technology Officer at Ripple, has offered a new perspective to XRP holders grappling with recent market downturns, suggesting that a higher price for the digital asset could, in fact, enhance the efficiency of the XRP Ledger. Schwartz believes the potential gains from widespread adoption of the XRP Ledger far outweigh its current market valuation.

“The higher the price, the better,” Schwartz stated in a response to a community member’s query about XRP’s capacity to handle substantial payment volumes. He elaborated that increased valuations could lead to more cost-effective liquidity and reduced slippage during transactions.

These remarks come as XRP hovers around the $1.10 mark, a level that has left investors disheartened following another significant market correction. However, burgeoning developments within Europe’s banking sector are injecting renewed momentum into the long-term adoption narrative for XRP.

Schwartz’s comments directly address a critical question for XRP investors: can the token capture value as the XRP Ledger ecosystem expands? A higher XRP price could render the asset more practical for institutions moving large sums of money. Each token would represent greater value, potentially decreasing the quantity of XRP required for substantial settlements. Crucially, deeper liquidity would enable institutions to execute larger transactions without significantly impacting market prices, making XRP’s potential as a bridge asset particularly relevant for cross-border payments.

Schwartz also strongly defended XRP’s long-term value proposition, asserting, “I really do think it’s hard to believe we will end up in a world where XRPL is successful but XRP fails to capture a good fraction of that value.” This statement encourages XRP holders to focus on network adoption rather than solely on daily price fluctuations. Schwartz acknowledged that XRP’s price currently mirrors broader cryptocurrency market trends more closely than specific developments related to Ripple and the XRP Ledger. Nevertheless, his comments underscore the potential for successful network adoption to ultimately benefit the underlying token.

European Banks Accelerate Blockchain Initiatives

The institutional landscape is becoming increasingly compelling as European banks prepare to expand their blockchain-based financial services. Qivalis, a consortium comprising 37 European financial institutions across 15 countries, is on the verge of launching a regulated euro-denominated stablecoin. This initiative aims to establish a unified digital euro infrastructure for payments and settlements, potentially empowering European banks to compete with the dominant dollar-backed stablecoins in the global market.

The consortium secured Electronic Money Institution authorization from the Dutch central bank in October 2026, moving its planned stablecoin closer to a commercial launch. Notably, two Qivalis members, BBVA and DZ BANK, have existing ties with Ripple’s institutional custody services. BBVA announced an agreement with Ripple in September 2025 to leverage Ripple Custody technology for its digital asset services, while DZ BANK has also collaborated with Ripple on institutional digital asset custody infrastructure. Their involvement in Qivalis signifies a growing trend among established European banks to explore blockchain-based financial products.

Market Headwinds Persist Amidst Institutional Optimism

While the immediate market outlook remains challenging, derivatives data presents an interesting counterpoint. XRP is trading below $1.10, following a sharp correction that brought the token to its lowest levels since August. Binance’s XRP cumulative volume delta has recently turned negative, indicating that aggressive selling has outpaced buying activity, suggesting that buyers have yet to fully absorb the recent selling pressure.

Liquidations have also impacted sentiment. On November 9, XRP experienced approximately $26 million in liquidations across seven exchanges, with long positions constituting 98.4% of the total. Concurrently, US spot XRP ETFs saw net outflows of approximately $10.4 million on the same day.

However, these short-term market figures do not diminish the significance of longer-term institutional developments surrounding Ripple. The increasing demand for regulated digital asset infrastructure could present opportunities for XRP as financial institutions seek more efficient methods for value transfer. Schwartz’s argument ultimately centers on looking beyond the token’s immediate market performance. If the XRP Ledger secures a substantial portion of institutional payment and settlement activity, XRP could emerge as an increasingly vital liquidity asset.