XRP Compared to Bitcoin: A former Ripple Board Member Explains Why His XRPN Bet Outperforms the Saylor Model
Evernorth holds over 473 million XRP, making it the largest publicly traded XRP treasury. The company's CEO, Asheesh Birla, stated that the company will deliberately slow down its pace and make cautious decisions regarding how to generate returns for these tokens.
In an interview with the Thinking Crypto podcast, Birla stated that Evernorth will not merely hold it passively. He also mentioned that there is no timeline or fixed ratio for how the company will get XRP to be involved in operations. He reminded investors to "think twice" when crypto returns seem abnormally high.
Anti-Strategy style treasury
Birla indicates that he has no intention of copying the approach of Strategy. Strategy initiated the trend of establishing digital asset treasuries with Bitcoin. He said that Strategy profits by holding Bitcoin and utilizing traditional financial engineering, a method that is suitable for assets that can be transferred and stored but have limited uses on their own blockchain.
He believes that XRP is different, as it is designed for financial applications. This gives Evernorth more options than Bitcoin Treasury companies:
- Traditional returns: Obtaining returns through traditional financial channels
- On-chain earnings: Let XRP play its role directly on XRP Ledger.
- DeFi Lending: Lending products that are emerging in the XRP ecosystem
Birla also indicates that as Evernorth is launched, the market's interest in bringing real-world assets onto the blockchain is on the rise, and he expects this to support the company's plans.
Why is Evernorth standing still without taking any action?
Birla was asked whether Evernorth would deploy 50% of XRP, or perhaps invest all of it. He did not provide a specific figure. He stated that the company first needs to have a sufficiently large market in order to offer the appropriate returns, after risk adjustment, as he mentioned.
"We won't sprint," he said, describing the plan as "well-organized."
He also mentioned that the crypto industry has a history of reckless lending in the past. “There were many wild-west-style practices in the crypto world. I hope we have now moved beyond that stage,” he said. If the returns seem like “something you have never seen before,” he said, “you should think twice.”
What does this mean for XRP?
Evernorth holds 473 million XRP, which is one of the largest single holdings of XRP outside of Ripple. How quickly it enters the XRP Ledger lending and DeFi markets will affect the amount of liquidity these markets can obtain. The statements from Birla indicate that as these markets mature, funds will gradually flow into them.
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