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Following
XRP Banks 'adoption of XRP for cross-border payments may directly drive demand for assets.
Cryptography researcher SMQKE pointed out that banks' adoption of XRP in cross-border payments may directly affect demand for the asset. In a recent tweet, SMQKE focused on a Ripple demonstration explaining how financial institutions can use XRP as a bridge asset to expand international payment capabilities.
This post focuses on two possible ways for banks to obtain XRP for settlement. SMQKE made it clear that both methods will increase demand as payment activity within the network grows.
XRP being used by banks for cross-border payments will push up its price. 
The Ripple demonstration reveals the adoption path for this XRP. 
Banks can choose to hold XRP and accumulate the asset, or obtain it from an exchange, which will increase trading volume. Either way, demand... pic.twitter.com/6reUriIgCR-SMQKE (@SMQKEDQG) September 5, 2026
SMQKE highlights two ways banks can obtain XRP
"Banks adopting XRP for cross-border payments will drive up their prices," SMQKE wrote, citing the Ripple demonstration as evidence of a potential adoption path. According to the researcher, banks that use XRP for cross-border payments can either hold the asset directly or obtain it through a cryptocurrency exchange when the transaction needs to be completed. In the first scenario, banks accumulate XRPs for their payment services; in the second scenario, they obtain XRPs in the market as needed.
SMQKE said that as the network expands, either approach will increase the demand for XRP. As a result, the researcher linked greater bank usage and higher payment activity to potential growth in market demand.
The video accompanying the post explains this mechanism in more detail. The speaker described XRP as a digital asset that can facilitate payment settlement and pointed out its speed, scalability and low cost as factors that make it suitable for cross-border transactions.
The presentation also pointed out that banks can increase their payment volume and coverage without having to establish additional direct liquidity relationships in each market.
Ripple presentation highlights the liquidity role of XRP
The speaker further mentioned XRP's trading volume, saying its average daily trading volume is higher than many exotic (non-mainstream) currencies. According to the presentation, this liquidity makes XRP suitable for payments involving less liquid currency channels.
The presentation explained that each participating bank can choose to hold XRP directly or use an exchange to obtain the asset. Under this arrangement, XRP will serve as an on-demand liquidity pool for banks to access when settling payments.
The speaker then described RippleNet as a solution to existing liquidity challenges and defined the system as more capital efficient.
SMQKE's post paid special attention to the potential impact of this model on XRP requirements. The model in the video does not require banks to maintain separate liquidity arrangements for each channel, but instead uses XRP as an intermediary asset for settlement.
Community comments strengthen the demand argument
XRP HERALD agreed with SMQKE's explanation, pointing out that banks can either hold XRP or obtain it through exchanges, and both options have the potential to increase demand. The account also links greater network activity to increased pressure on available supply.
Nat Turner focuses on the inefficiencies of existing banking structures. Turner believes that banks currently maintain separate accounts, currencies, liquidity buffers and collateral in different countries. According to comments, this structure has led to capital trapped, duplicate reserves, slow settlements and foreign exchange frictions.
SMQKE's post ultimately suggests that banks 'adoption of XRP may be a driver of their demand, especially if cross-border payment activities expand and financial institutions increasingly use the asset for on-demand liquidity.
