XRP Supply Shock: Here’s What Happens as Institutions Move Toward DLT Settlement

• Stellar Rippler warns that recent liquidity disruptions, such as CME halting silver trading, signal tightening liquidity beneath the surface.
• He argues XRP could face similar stress once institutions shift to DLT settlement.
• Instead of an immediate price rally, he predicts an initial “liquidity evaporation” phase, where exchanges run out of XRP.

A well-known crypto commentator, Stellar Rippler, has issued a stark warning about growing liquidity stress across traditional markets, drawing parallels between recent disruptions in commodities and banking systems and what he believes could soon happen to XRP once institutional settlement demand accelerates.

Market Disruptions Spark New Liquidity Fears

Stellar Rippler highlighted a sequence of events he says the public is failing to connect. According to his analysis, the CME abruptly halted trading in response to physical silver delivery pressure, a move that coincided with U.S. banks quietly pulling $24.4 billion from the Federal Reserve’s Standing Repo Facility.

He suggests these actions point to sudden liquidity tightening under the surface. The analyst further claims banks were forced to scramble for short-term funding while markets cited generalized “technical issues,” a phrase he argues is often used when trading systems experience stress linked to real-world deliverability constraints.

Also Read: Apple Pay and Google Pay Endorse XRP Across 40 Countries: Fact Check

Something Huge Is Happening And Nobody Is Connecting The Dots.

CME halts trading the moment physical silver stress shows up
Then, at the exact same moment, banks quietly yank $24.4B from the Fed’s standing repo window?
Banks scramble for emergency liquidity
… pic.twitter.com/qs0Dnvjlxr

— Stellar Rippler (@StellarNews007) November 28, 2025

“What makes the situation more alarming,” he wrote, “is that these events unfolded on a half-day Friday with no month-end settlement pressure.”

XRP Could Face Similar Pressure When Institutions Transition to DLT

Stellar Rippler drew a direct comparison between current market stresses and what he believes will occur when global institutions shift to distributed ledger technology (DLT) for cross-border settlement.

In his view, assets used for real-time settlement, particularly XRP, would experience sudden liquidity strain similar to what is seen in legacy commodities markets during supply crunches.

“When banks, payment service providers, liquidity hubs, and FX desks suddenly need XRP for settlement, exchanges will feel the squeeze,” he claimed. He predicts that instead of an immediate price rally, the first visible effect would be exchanges running out of XRP supply as institutional actors absorb circulating liquidity.

“XRP Won’t Pump — It Will Evaporate First”

The analyst argues that XRP’s reaction to institutional demand won’t follow the typical speculative curve. Instead, he says a structural liquidity shock will occur before any major market repricing.

According to his commentary, users should expect trading interruptions, temporary “glitches,” and moments where XRP availability dries up on major platforms, signs he interprets as the early stages of a systemic reset as financial institutions begin settling large-scale transactions on DLT rails.

“Liquidity vanishes, demand surges, and the old system can’t keep up with the migration,” he said, comparing the expected scenario to past disruptions in silver, CME futures, and other markets strained by real-world deliverability issues.

Also Read: XRP Technology Listed as Settlement Layer Candidate for These Top Global Banks

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