XRP News Today: XRP's Gold-Backing Hopes Clash With Technical Realities

Ripple veteran Versan Aljarrah has reiterated that XRP does not require direct gold backing to benefit from the asset's value, emphasizing instead its role as a facilitator for gold-backed tokens on the XRP Ledger (XRPL). In a recent analysis, Aljarrah explained that XRP can act as a bridge for tokenized gold, oil, and other real-world assets entering the blockchain through XRPL, without needing to be physically backed by bullion. This synthetic connection, he argued, could cement XRP's relevance in global finance by enabling seamless transactions with gold-backed stablecoinsTheCryptoBasic^[1].

Meld Gold, a digital finance company, is currently leading efforts to tokenize gold on the XRPL. The project plans to issue a stablecoin representing one gram of physical gold, stored by custodians like MKS Pamp and Imperial VaultsTheCryptoBasic^[1]. While PAX Gold (PAXG) and other gold-backed tokens exist on other blockchains, Aljarrah anticipates a surge in similar projects on XRPL, further integrating gold with decentralized finance toolsTheCryptoBasic^[1].

However, technical experts and former Ripple personnel have consistently dismissed the feasibility of XRP being directly backed by gold. Matt Hamilton, former Ripple developer relations director, stated in September 2025 that "You can't back XRP with gold. Sorry," refuting speculative claims that XRP could reach $2,953 by early 2026 if gold-backed. Hamilton highlighted that XRP's fixed supply of 100 billion tokens and its role as a utility asset for liquidity and settlement make it incompatible with a gold-backed model.

The debate gained traction earlier this year when community members speculated about XRP's potential gold backing, including a viral post by user Ripple_queen asserting XRP would be "supported by the $2953.62 price of gold"TheCryptoTimes.io^[4]. Such claims, however, lack technical support, with critics noting that gold-backed cryptocurrencies like PAX Gold operate as separate tokens rather than reclassifying XRP itselfCoinedition.com^[3].

Despite the absence of direct gold backing, XRP's bullish prospects remain tied to regulatory developments, institutional adoption, and its utility in cross-border payments. Analysts like Leshka (leshka.eth) have projected XRP could reach $8–$9 by Q4 2025, citing historical price patterns and growing demandCoinpedia.org^[6]. Meanwhile, Grok AI, Elon Musk's AI chatbot, suggested XRP might surge to $10–$15 by 2027 under realistic adoption scenariosTheCryptoBasic^[7].

The XRP community remains divided on the gold-backing debate. While proponents argue it could enhance stability and credibility, skeptics emphasize the technical and logistical challenges of implementing such a model. As of September 2025, no credible evidence supports the claim of XRP being directly backed by gold, with most experts focusing on its role in facilitating tokenized assets rather than becoming one.