- Birla states that crypto has grown out of its early days of being like a casino, driven by hype and quick trades.
- Unlike many cryptos that evolved organically from retail use, XRP was built from the ground up for business payments.
- While companies such as Strategy hold assets like Bitcoin, Evernorth’s goal is to use its capital actively.
Asheesh Birla, CEO of Evernorth, guested on Paul Barron’s podcast, where he talked about how XRP is now seen more as a foundational technology for banks and businesses, and less as a speculative digital asset. Birla states that crypto has grown out of its early days of being like a casino, driven by hype and quick trades. He points out three main changes that are moving this shift: clearer rules, institutional-grade infrastructure, and institutional capital.
Birla believes that these changes together create the right environment for crypto to be used as a reliable part of the financial system, not just as something to trade for quick profits. He also gave a few reasons why XRP is specifically well-suited for institutional finance.
For instance, unlike many cryptos that evolved organically from retail use, XRP was built from the ground up for business payments, market-making, and moving money across borders. Its network, the XRP Ledger, includes built-in tools like a fast trading system, quick finality, and very low fees, which are all features that matter to big financial players.
Additionally, XRP’s legal status is now clearer in the United States. This greatly reduces the regulatory gray area that used to scare off companies and large banks from using it.
Related: Ripple-Backed Evernorth Faces $230M Unrealized Loss on XRP Holdings
Evernorth’s strategy
Birla also pointed out how Evernorth’s strategy differs from typical crypto treasury plans. While companies such as Strategy borrow money to buy and hold assets like Bitcoin, Evernorth’s goal is to use its capital actively and:
- Support the growth of new apps and services on the XRP network.
- Participate in XRP’s DeFi in a safe, regulated way that is suitable for large firms.
- Earn a return on its investment rather than just waiting for the price to go up.
One of the more compelling themes from the discussion is programmable corporate treasury management.
Birla gave examples of companies using blockchain to automate tasks like converting currencies, paying employees, and managing cash. Basically, making things faster, cheaper, and less reliant on manual work.
Related: Mike Fay Says XRP Price Is Driven By ETFs, Not Network Usage
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