- XRP is a utility token; no mechanism exists to peg it to gold.
- Gold-backed tokens exist, but they issue separate tokens, not transform XRP.
- XRP can bridge gold tokens on XRPL without itself being backed by bullion.
A former Ripple employee, Matt Hamilton, weighed in as to why XRP cannot be backed by gold.
He pushed back on a community post aiming for jaw-dropping XRP price targets; some had speculated XRP to hit $2,953 in early 2026 if it were gold-pegged. Hamilton’s response triggered a broader debate on a bullish potential there is, but claims of gold backing to be unrealistic.
Related: SEC to Decide on 16 Altcoin Spot ETFs in October: XRP, Solana, Litecoin on the Line
The Gold-Backing Theory and Why It Fails
The idea behind XRP being backed with gold is simple in theory, that is, to anchor the digital currency to a physical asset, potentially creating a floor in volatile markets. But in practice, it clashes with how XRP is built.
First, XRP is a utility asset used for liquidity, bridging, and settlement on the XRP Ledger (XRPL), not a commodity backed by reserves. There is no protocol, vault, or redemption mechanism ensuring XRP holders can swap tokens for physical gold. (Gold-backed cryptos exist, like PAX Gold or Tether Gold, but they issue separate tokens pegged to gold, not repurpose an existing utility coin.)
Second, gold-backed tokens carry counterparty risk (vault custodians, audits, custody failures), which reduces the purity of owning an asset.
Third, empirical studies of gold-pegged cryptos show they don’t replicate gold’s safe-haven behavior. In volatile markets, their volatility often mirrors underlying crypto trends rather than gold’s stability.
So if someone claims “XRP backed by gold,” be skeptical. No credible record, code change, or backing mechanism supports that.
Could There Be a Synthetic or Bridge Role to Gold?
While XRP itself can’t realistically be backed by gold, it can play a role as a bridge for tokenized gold assets on XRPL. For example, Meld Gold, a project on the XRP Ledger, plans to issue gold-backed tokens on XRPL, where custodians hold actual gold and XRPL facilitates transfers.
In that scenario, XRP doesn’t become gold-backed; it powers the movement of gold tokens. That gives it a synthetic connection to gold assets without altering its core identity as a utility coin.
XRP’s Current Bullish Context (Without Gold Backing)
Even without gold backing, XRP retains bullish narratives. XRP traded for $2.90 at the time of writing, rebounding from last weekend’s pullback that saw the price drop below the $2.81 crucial support. The latest rally reflects resilience by XRP bulls and boosts the cryptocurrency’s upside sentiment, which most users believe is waiting for the next trigger to materialize.
More materially, XRP’s inclusion in the U.S. strategic crypto reserve program, its ongoing SEC-related developments, and multiple ETF applications give it structural catalysts that don’t rely on precious metal backing.
So yes, XRP can rally, many believe strong targets are within reach, but those moves will need to rest on adoption, regulatory clarity, and narrative momentum, not ungrounded gold backing.
Related: XRP Price Levels to Watch Today: $2.70 Support, $3 Resistance, Momentum Next
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