What to know:
- Senate CLARITY markup may unlock broader institutional XRP Ledger settlement activity globally.
- Ripple escrow reserves could seed liquidity pools supporting RLUSD and EURCV corridors.
- Vincent Van Code says deeper liquidity requirements could eventually support XRP appreciation.
Crypto market commentator Vincent Van Code published a detailed breakdown on X explaining why the upcoming Senate CLARITY Act markup could become a turning point for XRP’s institutional role.
His analysis focused on how regulatory approval could allow global banks to expand settlement operations on the XRP Ledger using liquidity infrastructure that already exists across several financial corridors.
According to Van Code, Ripple’s escrow holdings may no longer function as a long-term market concern if institutional participation accelerates after the Senate decision. Instead, he argued that billions of XRP could eventually support automated liquidity pools tied to RLUSD, EURCV, Japanese remittance systems, and tokenized treasury products.
He also explained that larger institutional settlement flows would require deeper liquidity, a factor he believes could push XRP toward significantly higher valuations over time.
XRP Liquidity Structure Could Change After Senate Markup
According to Van Code, the May 14 Senate markup may provide the legal clarity that financial institutions have waited for before increasing blockchain settlement activity. He explained that many institutions already operate connected infrastructure capable of supporting XRP Ledger liquidity at a larger scale.
His analysis pointed to several corridors already linked to institutional blockchain activity. These included Ripple’s RLUSD stablecoin network, Société Générale’s EURCV settlement product, SBI-backed Japanese remittance testing, and Ondo Finance treasury-backed collateral systems.
Also Read: Former Ripple CTO David Schwartz Joins XRP Ledger Foundation Leadership Push
THE CLARITY SWITCH: Why the Senate Markup is the "Go" Command for XRP Liquidity
TL;DR: The digital asset market has spent a decade in beta. This Thursday, May 14, 2026, the CLARITY Act Senate markup provides the final legal API for G-SIBs (Global Banks) to move trillions…
— Vincent Van Code (@vincent_vancode) May 12, 2026
Moreover, Van Code argued that Ripple’s escrow structure could operate differently once institutional liquidity demand expands. Instead of remaining tied to possible market selling pressure, billions of XRP could reportedly enter automated market maker pools supporting settlement and liquidity operations.
According to Van Code, Ripple may eventually allocate between 5 billion and 10 billion XRP into liquidity pools connected to institutional trading corridors. Consequently, the XRP Ledger could gain deeper liquidity needed to support larger transaction volume with lower slippage.
Why Van Code Believes XRP Could Reach $10
Van Code also explained that automated market maker systems depend heavily on liquidity depth. He noted that processing transfers worth hundreds of millions requires significantly larger total value locked across XRP pools.
Besides that, the analyst argued that XRP’s current price structure creates liquidity inefficiencies for institutional-scale transfers. According to his calculations, maintaining large settlement corridors at lower XRP prices would require excessive token supply inside liquidity pools.
Because of this, Van Code suggested XRP valuations may rise naturally if institutional payment volume continues expanding. He specifically referenced the $10 price range, explaining that higher valuations would reduce the amount of XRP required to support efficient settlement operations.
The Senate CLARITY Act markup has strengthened expectations surrounding XRP’s institutional role within blockchain settlement markets. Vincent Van Code believes clearer regulation could support larger liquidity deployment on the XRP Ledger while improving XRP’s position within cross-border financial infrastructure.
Also Read: Evernorth Reveals Reasons Behind XRP Treasury Surge as Utility Jumps 65%
The post The CLARITY ACT Switch: Why the Senate Markup Could Propel XRP to $10 appeared first on 36Crypto.