Borrowing Against XRP: Who Lends and Where Liquidation Starts

Why would I ever sell an asset if it became systemically important like that? Why wouldn't you just borrow against it?

That's Jake Claver. He manages money for wealthy families with a focus on crypto. And that's his advice to XRP holders. Don't sell your XRP, borrow against it. And it's easy to see why that idea is spreading.

Because right now, XRP is about 67% below its all-time high. And selling here feels like you've given up on a coin that you've believed in for years. Borrowing sounds like the way out. You get cash and you keep every coin. People say that's how the rich do it.

And the name you always hear is Elon Musk. He has about 207 million Tesla shares put up against loans, but your XRP isn't Tesla's stock. So, we're going to test his plan on a stack of 10,000 XRP. And we're checking two things. Who will actually lend against it and the exact price where they'd start selling it.

And that price is a lot closer than most holders think. And here's why it's worth checking. A company sitting on about 473 million XRP already put a warning about these loans in its own filing. So, can you really borrow against your XRP and never sell a single coin? Well, that's what we're going to find out in this video.

Let's run it. All right, bull runners. Welcome back to the channel. Now, before we get into it, I want to answer a comment from our last video. In that one, we went through the big price calls holders were given for 2026, like an $8 XRP and a $250,000 Bitcoin.

And one of you said the real point was to set up a video on Jake Claver. And I get why it looks that way because Jake's in this one, too. But I've got nothing personally against Jake. A lot of you watch him and plenty of you are hearing his advice right now. So when advice like this starts to spread, we do what we always do.

We run the numbers on it the same way we would for anyone else. In that last video, the bank behind the $8 XRP price target and Tom Lee's $250,000 Bitcoin call got the exact same check. And in that same comment, he made a good point. Predicting prices is one of the hardest things in crypto. And even the smartest people miss all the time.

I do as well. So that's why I like to stay away making personal price predictions because I focus more on market structure, momentum, divergences, you name it. Because nobody knows where the price is going to go next. And anyone that tells you with the utmost confidence is just guessing. And the issue that I see is a lot of people make real decisions with their hard-earned money because of what these voices online say, including mine.

And I know that leaves me with a lot of responsibility. So, I don't think it does you any good to just throw out random price predictions unless they're backed by actual logic and math because some of you held all spring waiting for an $8 XRP. So, that's why we check. And today's advice goes further than just a price prediction. It's about what to do with your XRP you already hold.

So, let's see if it really works. Now, Elon Musk is the proof people use for the never sell plan. So, we'll start with a quick check on him. Did borrowing really keep him from selling? Those are his 207 million shares in Tesla's yearly filing.

And Tesla puts a limit on how much he can borrow against them. His loans can't go over 25% of what those shares are worth. So keep that 25% in mind because we're going to run our 10,000 XRP through the same rule. But here's what happened when Elon Musk needed big money in 2022. He wanted to buy Twitter and he lined up a $ 122.5 billion loan against his Tesla shares.

And he dropped that loan before the deal went through. That year he sold about $23 billion of Tesla stock instead. So the richest man alive had the borrowing all set up and he still sold. And Mus loans are backed by shares in one of the biggest companies on Earth. So would anyone lend against your XRP?

Well, it turns out you can do it right inside Coinbase. Since February, XRP holders there can borrow against their coins. So this part of Claver's plan is real. So let's say you try it. You've got 10,000 XRP and you need some cash.

You don't want to sell a single coin. So, you open Coinbase and you borrow against it. When we did the math, XRP was at about $1.32. So, that stack was worth $13,200. Now, XRP is lower today, but every percentage here works the same at any price.

Coinbase lets you borrow up to 49% of that. So, about $6,500 lands in your account and you still own every coin. Now, hold on to that 6,500 because we're coming back to it. Here's the catch, though. Your loan stays the same.

But if XRP falls, your coins are worth less. And once the loan is 62.5% of what your XRP is worth, the lender starts selling your coins. You lose a bit more of them as a penalty, too. So 62.5% is the line you never want to reach. And if you hold XRP, this next part is frustrating.

If you just held Bitcoin instead, the same app would lend you up to 75%. With XRP, you get 49%. So Coinbase is a lot more careful with XRP than with Bitcoin. And people are already doing it. About $60 million has been borrowed against XRP this way at about 7.5% a year.

And that rate moves depending on when you're watching this. Other crypto lenders are even more careful. Nexo is one of the big crypto lending apps and it only lends up to 30% of your XRP's value with rates they say start as low as 1.9%. And with a lender like Nexo, there's one more thing to know. Your XRP sits with them the whole time.

And that matters if the lender goes bust. And it's already happening to people. A big crypto lender called Celsius went under and a judge later looked at one customer's loan and ruled that the coins put up for it belonged to Celsius. That customer was left waiting in line with everyone else that Celsius owed. So imagine putting up your XRP so you never have to sell it and losing it that way.

So before you go out there and borrow, you want to know who's holding your coins. So yes, your 10,000 XRP can get a loan from an app, but Claver's plan is bigger than that. He talks about banks and big firms lending against XRP the way that Mus lenders take Tesla stock. So, are they? Well, in September, one post made it sound like they were.

Ripple just revealed institutions can now use XRP as collateral. And it's true that Ripple let some big clients put up XRP through its brokerage for institutions, Ripple Prime. So, the person to ask is the one running it. Back in March, Claver sat down with Ripple Prime CEO Mike Higgins to talk about what XRP does there. And here's how he explained it.

So you have um you know XRP as a as an asset and a collateral you can hold. We understand that quite well around uh Ripple prime. Um but if you wanted to trade futures on the CME the CME doesn't take XRP as good clap. And so instead of transforming that and selling that into dollars to give to your clearer, right, to trade CME, what you can do through Ripple Prime, uh, is post your XRP as as good margin. We give you dollar credit to trade on the CME.

And so now you could be long spot frontman future capturing the basis trade. It's no different than the traditional world where the Merc was set up, the Chicago Mercantile Exchange, the CME was set up. So, that's a real yes, but only inside Ripple for its big clients. So, what about the big exchanges and the banks? Well, Coinbase is a good place to start.

It's an app. It'll lend you money against your XRP, but its new trading service for big firms won't take XRP at all. It only takes Bitcoin, Ethereum, and USDC as collateral. And they say with more coming soon, but XRP isn't on that list right now. So, why are the big players starting with XRP?

Well, because of the rules they have to follow. In the US, futures brokers answer to a regulator called the CFTC. And at first, it only lets them take Bitcoin, Ethereum, and stable coins. Other coins can come later, but they can count for at least 20% less. So, $1,000 of your XRP could count as $800 or less.

And the rules for banks are even tougher. Banks all over the world follow one set of rules for how much risk they can take, called Basil. It puts coins like XRP in its riskiest group and it calls them not eligible forms of collateral. So a bank can't count your XRP as security for a loan. And if a bank holds XRP itself, it has to set aside about $1 of its own money for every $1 of XRP.

And that's the hardest part to swallow as an XRP holder. XRP was built to move money between banks. And the bank's own rules still treat it as too risky to lend against. Now, those rules are under a review, and the Basil committee says it'll give an update by the end of the year. So, this definitely could change.

But today, a bank won't take your 10,000 XRP. So, what about XRP's own network, the XRP ledger? Can you just borrow there? Well, you can't. At least not yet.

There's a lending feature waiting to switch on there, and the computers that run the network have to vote on it. It needs 28 votes, and right now it has 21. And even when it does switch on, those loans don't take any collateral at all. the lender just decides who it trusts to pay it back. So even on XRP's own network, there's nowhere yet to put up your XRP and borrow against it. To do that today, your XRP has to leave the XRP ledger like it does with that Coinbase loan.

So if anyone could borrow big against XRP, you'd think it's the company sitting on about 473 million of them. Well, we went through its filing. It's Evernorth, the biggest company built just to hold XRP. It's the closest thing XRP has to Elon Musk with a giant pile of one asset. And Evernorth's own filing calls its $30 million of debt senior unsecured.

So even Evernor didn't put up any of its XRP to borrow that money. And that warning that I mentioned at the start of this video is in the same filing. Evernorth says it may not be able to get loans backed by its XRP when the price of XRP has declined significantly. Now think about what that means for you. The moment you'd want a loan, right after XRP drops is the moment lenders can back away.

And if you already have a loan, the same drop is what pushes it towards the 62.5% line when the selling starts. So, are the big lenders ready yet? Well, Claver answers that himself. So, what if XRP sits inside that machine? This is the speculative leap this video is taking.

Okay, it doesn't exist today, but I do believe it will in the future. So, the system his plan needs isn't here yet, but plenty of holders are hearing never sell, just borrow. And thinking about doing it right now with the small loans that exist today, and some of them can already see where the danger is as the price falls. Using XRP as collateral changes the game from selling the coin to using it like an asset. The risk is still the loan if the price drops fast.

So, let's see what a fast drop does to you. Remember that $6,500 loan? Well, you've got the cash and you haven't sold a single coin. So, it feels great, but Coinbase starts selling at the 62.5% line that we talked about with $6,500 borrowed against 10,000 XRP. You hit that line when XRP falls to about $1.3.

That's a drop of only about 22% from where you started. Now, say you play it safe and you borrow like Musk, 25%, the same cap that Tesla puts on him. On your $13,200 stack, it's about $3,300. For that loan to hit the 62.5% line, your 10,000 XRP would have to be worth only about $5,300. That's XRP at about 53.

A 60% drop from $1.32. Now, that sounds like a lot of room, but how fast can XRP really drop? Well, last October, it dropped faster than most people thought was possible. In a single day, XRP fell 55% on Binance from about $2.80 to $1.25. Even on Coinbase, it fell about 38% that day.

So either way, that's way past the 22% line. So with the $6,500 loan, Coinbase would have started selling your coins that same day. The safe 25% loan needed a 60% drop. So it got through that day, but gave it a little longer. And even the safe loan runs out of room.

Say you'd taken it in July of 2025 when XRP was near its top at about $3.67. A 60% drop from there is about $147. And by this year, XRP had fallen as low as about 98. So the loan would have hit that line as well. So even the careful loan ends up selling your XRP if you bought it and you take out the loan at the wrong time.

You borrow so you never have to sell and the lender sells anyways right when the price is low. So can you really borrow against your XRP and never sell? Well, right now you can borrow against it, but only a small loan. And a 22% drop is enough for the lender to start selling. And the banks and big firms that could lend your real money against XRP still won't take it.

And nobody right now can tell you when they will. Now, that news will change in the future, but as of right now, it's slim to none. And I get why this plan is so popular. Never sell. It sounds like loyalty.

It sounds like diamond hands. Huddle forever. Just like what everyone was hearing in 2017 before the market took everybody's gains back. It's what the institutions want you to do. It's what the wealthy want you to do so they can use you as exit liquidity because crypto is player verse player.

When one person makes money, another person loses money. In order for you to make money in this industry, you have to understand the brutal truth that the institutions and the wealthy won't tell you. And that's what we share with you on this channel because you've held through a lot to keep your coins. And the last thing you want to do is sell them near the bottom. But that's exactly what a loan like this can do.

XRP drops about 22% and the lender starts selling your coins and it doesn't ask you first. And when you believe in XRP, it's really hard to see. Every loan looks safe because you're sure the price will never fall far enough to hit that line. So before you put up a single coin, jump on a call with an expert on my team. They'll go through your XRP with you and work out what a loan would really look like and what a 20% or a 50% drop would do to it.

And if what you really want is to make your XRP work for you without selling it, they help with that, too. They'll show you the ways to earn yield on your XRP and your other altcoins and the risks that come with each one. So, if you ever do borrow against your XRP or other coins, you'll know your liquidation line before XRP gets anywhere near it. So, if you want to schedule that call, it's the first link in the description. It says, "Put your XRP to work." On mobile, tap the button that says more.

It's the first link at the top. There's a short video there explaining the process. And then it takes about a minute to schedule the call. Now, the next big thing to watch is that update on the bank's rules due by the end of the year. That's the first real sign of whether the big lenders that Claver's plan needs will ever take XRP.

So, subscribe to the channel to stay in the know. We cover the crypto markets every single day. I will see you on the next video through the link below. I will see you at the top. As always, you know what to do.

Stay bullish. Hey, hey, hey. [music]