“XRP Is an Heirloom to Pass Down for Generations”... The Truly Wealthy Don’t Sell

▲ XRP / AI-generated image

A strategy long favored by the wealthy—using assets as collateral instead of selling them to realize value—is being reshaped around XRP.

According to crypto-focused outlet The Crypto Basic on February 17 (local time), fintech CEO Mickle recently revealed how affluent investors are building long-term wealth without selling digital assets such as XRP. Unlike ordinary investors who often liquidate holdings early to cover living expenses, wealthy individuals secure cash liquidity by borrowing against their XRP holdings as collateral.

The primary reason the wealthy prefer borrowing over selling is tax efficiency. Selling XRP can trigger substantial capital gains taxes, whereas borrowing dollars against the asset is not treated as a taxable event, allowing them to maintain their holdings. This strategy has become an essential wealth-management tool among ultra-high-net-worth individuals because it enables immediate access to funds without forfeiting potential future price appreciation.

Mickle emphasized that this approach mirrors the traditional “Buy, Borrow, Die” strategy used by real estate and stock tycoons to grow generational wealth. XRP is regarded as highly valuable collateral due to its strong liquidity and global payment utility. Investors employing this method rely on the belief that the asset’s value will rise over time, effectively offsetting current debt with higher future valuations.

While retail investors may react to price volatility by hitting the sell button, institutions and large whales are leveraging it as a tool for long-term holding. Mickle noted that XRP has evolved beyond mere speculation into a strategic asset capable of facilitating intergenerational wealth transfer. Building a system that allows investors to enjoy wealth without selling their assets is seen as key to achieving true financial freedom.

Ultimately, the winners in the cryptocurrency market are expected to be those who preserve the quantity of their holdings and strategically utilize the system. Financial experts anticipate that as the XRP Ledger ecosystem expands, collateralized lending and related financial services will become increasingly sophisticated. As global capital flows continue shifting toward digital assets, the wealth-building model chosen by the affluent is presenting new investment horizons for retail investors as well.

Disclaimer: This article is for investment reference only and we are not responsible for any losses incurred based on it. The content should be interpreted for informational purposes only.