In a bold move that has captured the attention of the crypto world, Ripple has quietly acquired nearly $11 billion worth of XRP from the open market since being sued by the U.S. Securities and Exchange Commission (SEC) in December 2020. This sustained purchasing campaign underscores Ripple’s long-term commitment to both its native digital asset and its vision for the future of global payments.
The revelation, first reported by Blockworks and confirmed through Ripple’s public disclosures, highlights a strategic effort to stabilize and support the XRP ecosystem during one of the most legally turbulent periods in cryptocurrency history.
A Commitment to Market Stability
Ripple has consistently stated that its XRP acquisitions are aimed at supporting a healthy and liquid market for the digital asset. Unlike speculative buying, these purchases are part of a structured strategy tied directly to Ripple’s On-Demand Liquidity (ODL) service—formerly known as xRapid—which uses XRP as a bridge currency to facilitate cross-border payments in real time.
By sourcing XRP from public markets, Ripple ensures it can meet demand for ODL without relying on new token issuance or secondary sales from reserves. The company disclosed that this procurement has been ongoing since 2020, with only a brief pause during the U.S. banking crisis in March 2023.
“Our goal has always been to maintain a stable and functional XRP market that supports our institutional clients and partners,” said a Ripple spokesperson in a recent statement.
This approach not only strengthens confidence among financial institutions using ODL but also signals long-term belief in XRP’s utility beyond speculation.
Market Impact and Price Resilience
When the SEC lawsuit was announced in December 2020, XRP was trading around $0.22. The regulatory uncertainty caused major exchanges to delist the token, leading to a sharp decline in trading volume and investor sentiment.
Despite these headwinds, XRP demonstrated remarkable resilience. During the 2021 bull run, its price surged over 700%, reaching highs near $0.47—a testament to underlying demand and market belief in Ripple’s eventual legal victory.
Ripple’s continuous market presence through disciplined buying likely played a role in preventing deeper sell-offs and stabilizing price action during volatile periods. While Ripple does not disclose exact purchase prices or volumes, analysts believe the company may have averaged in at lower price points during bearish phases, maximizing long-term value.
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The Legal Battle and Its Aftermath
The SEC accused Ripple of conducting an unregistered securities offering by selling XRP to raise capital—alleging that over $1.3 billion was raised through sales of the token. However, in a landmark July 2023 ruling, Judge Analisa Torres determined that XRP is not inherently a security, especially when sold to retail investors on public exchanges.
This partial win clarified the regulatory status of XRP and set a crucial precedent for other crypto projects facing similar scrutiny. Major platforms like Coinbase and Kraken quickly relisted XRP, and institutional interest began to rebound.
Although the case isn’t fully closed—Ripple still faces penalties related to institutional sales—the broader implication is clear: utility-focused tokens with decentralized distribution may avoid classification as securities under current U.S. law.
Core Keywords Driving Market Sentiment
To align with search intent and improve visibility, key terms naturally integrated into this discussion include:
- Ripple
- XRP
- SEC lawsuit
- On-Demand Liquidity (ODL)
- XRP price
- crypto regulation
- XRP market
- Ripple legal case
These keywords reflect what users are actively searching for: updates on Ripple’s legal journey, insights into XRP’s price trajectory, and analysis of its real-world utility in cross-border finance.
FAQ: Addressing Common Questions About Ripple and XRP
Q: Did Ripple really buy $11 billion worth of XRP?
A: Yes. According to public disclosures and reporting by Blockworks, Ripple has spent close to $11 billion acquiring XRP from public markets since 2020 to support its ODL business and maintain market stability.
Q: Why does Ripple need to buy XRP instead of using its own holdings?
A: Ripple holds a large reserve of XRP, but using open-market purchases allows for greater transparency and avoids concerns about dumping large amounts from cold wallets. It also supports liquidity and price stability.
Q: Is XRP legal to trade in the U.S.?
A: Following the July 2023 court ruling, most major U.S. exchanges have relisted XRP, and it is now widely available for trading. The court found that retail sales of XRP do not constitute securities offerings.
Q: How does ODL use XRP?
A: On-Demand Liquidity uses XRP as a bridge asset to enable instant, low-cost international payments. Financial institutions convert fiat to XRP, send it across borders, then convert it back to local currency—reducing reliance on pre-funded accounts.
Q: Could Ripple’s buying influence XRP’s price?
A: Sustained institutional demand can contribute to price support, especially during downturns. While Ripple doesn’t manipulate markets, consistent procurement adds underlying demand pressure.
Q: What’s next for Ripple after the SEC case?
A: Ripple is focused on expanding ODL adoption globally, particularly in emerging markets like Southeast Asia and Africa. The company is also advocating for clearer crypto regulations in the U.S.
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Looking Ahead: Utility Over Speculation
While much of the crypto space remains speculative, Ripple continues to emphasize real-world use cases for blockchain technology. With partnerships spanning remittance providers, banks, and payment networks across Japan, South Korea, India, and the Middle East, ODL is proving that digital assets can solve tangible financial inefficiencies.
Moreover, Ripple’s disciplined financial strategy—buying rather than selling into weakness—sets a precedent for responsible corporate behavior in the decentralized era.
As global regulators continue shaping the rules for digital assets, Ripple’s journey offers valuable lessons: legal clarity matters, utility drives adoption, and long-term vision often triumphs over short-term noise.
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Final Thoughts
Ripple’s nearly $11 billion investment in its own ecosystem reflects more than just confidence—it reflects commitment. In the face of one of the most high-profile regulatory battles in crypto history, the company doubled down on XRP’s potential as a tool for financial innovation.
Whether you're an investor tracking XRP price trends, a developer exploring blockchain use cases, or a policymaker assessing crypto regulation, Ripple’s story illustrates how resilience, strategy, and utility can shape the future of money.
As markets evolve and adoption grows, one thing remains certain: Ripple isn’t just surviving the storm—it’s helping build the infrastructure for what comes next.
All content provided is for informational purposes only and does not constitute financial or investment advice.