Ripple's $1 billion XRP reserve plan is not simply about accumulating funds. There is a deeper market strategy behind it.

First, the core purpose of this reserve is to strengthen XRP's appeal among institutional investors. When large amounts of capital need to enter the market, a liquid asset environment can significantly reduce entry costs and slippage risks.

Second, ample reserves create fertile ground for new projects and application scenarios within the ecosystem. Whether it's cross-border payment innovation or DeFi integration, sufficient assets are needed to attract participants.

More importantly, this strategic layout directly relates to the long-term value support of XRP and the market liquidity framework. Stable liquidity means smaller price fluctuations, which is crucial for institutional funds.

In the crypto market, such practices have become standard for leading projects—both to convey institutional confidence and to practically promote the development of ecosystem applications.