Tokenized Gold and XRP: A High-Stakes Gamble to Restructure $36.2T US Debt

Versan Aljarrah, founder of Black Swan Capitalist, has proposed a novel approach to addressing the U.S. debt crisis, suggesting that XRP and Ripple’s RLUSD stablecoin could serve as foundational tools for restructuring the nation’s $36.2 trillion debt burden. The U.S. debt, which exceeds 122% of its GDP, is growing at a rate of $1 trillion every three months, raising concerns about inflation, interest rates, and economic stability. Aljarrah argues that the current debt-based system requires a “new anchor” to reset without triggering global financial panic, advocating for tokenized gold linked to RLUSD and XRP as a cross-border transactional bridge. This model would enable governments to manage debt more transparently while leveraging blockchain technology for efficiency.

The proposal hinges on tokenizing gold and pegging it to RLUSD, a stablecoin approved by the Dubai Financial Services Authority (DFSA) for use in the Dubai International Financial Centre. By anchoring debt to a gold-backed digital currency, Aljarrah envisions a system that mitigates the risks of fiat currency devaluation while providing a stable reserve asset. XRP, with its fast and low-cost cross-border payment capabilities, would facilitate global transactions, reducing reliance on traditional banking infrastructure. This approach aligns with broader trends in real-world asset (RWA) tokenization, which saw a 10.49% increase in on-chain value to $22.11 billion in the past 30 days, according to RWA.xyz.

Critically, Aljarrah’s plan faces significant challenges, including XRP’s inherent volatility and regulatory uncertainties. While tokenized government debt is gaining traction—El Salvador and other nations have explored similar concepts—U.S. regulators remain cautious about cryptocurrencies as reserve assets. Current U.S. policies recognize only Bitcoin as a qualified reserve asset for state treasuries, such as in New Hampshire. Additionally, the U.S. Treasury would need to redefine its approach to sovereign debt issuance, potentially requiring new legal frameworks to classify XRP as an acceptable reserve. Aljarrah acknowledges that such a shift would likely occur only in the event of a “fundamental collapse” in traditional bond markets, such as a global debt crisis or loss of confidence in Treasuries.

Despite these hurdles, Ripple’s recent regulatory approval for RLUSD in Dubai underscores growing institutional acceptance of stablecoins in financial systems. The Dubai DFSA’s endorsement positions RLUSD as a viable tool for cross-border settlements and debt management, particularly in markets seeking alternatives to the U.S. dollar. Meanwhile, Aljarrah’s vision intersects with broader macroeconomic debates about cryptocurrency’s role in mitigating traditional financial instability. As U.S. debt continues to outpace GDP growth, investors are increasingly turning to crypto as a hedge, with XRP, RLUSD, and Bitcoin gaining attention.

Analysts note that while Aljarrah’s proposal remains speculative, it reflects a broader shift toward blockchain-based solutions for sovereign debt. The U.S. debt-to-GDP ratio has reached levels not seen since the 1940s, and traditional refinancing strategies face constraints due to rising interest rates. Tokenized gold and XRP could offer a transparent, decentralized alternative, though their adoption would require unprecedented coordination between regulators, central banks, and private-sector innovators. The success of such a model would depend on overcoming technical, regulatory, and market volatility challenges—a feat that remains untested at the scale of a national economy.

Source: [1] XRP is the Solution to Rising US Debt: Black Swan Capitalist (https://www.cryptotimes.io/2025/06/05/xrp-is-the-solution-to-rising-us-debt-black-swan-capitalist/) [2] XRP Proposed as Revolutionary Solution to US Debt Crisis by … (https://www.btcc.com/en-CA/square/XRP%20News/433199) [3] Could XRP-Backed Government Bonds Become a … (https://thecryptobasic.com/2025/05/07/could-xrp-backed-government-bonds-become-a-reality-a-bold-proposal-by-black-swan-capitalist/)