$XRP

David Schwartz's "Next Adventure": Strategic Advisor Role at Evernorth's $1B+ XRP Treasury

I promised I'd have an update on my next adventure" - David Schwartz delivers as Evernorth's Strategic Advisor. After 13 years as Ripple CTO, a $500M mystery transfer, and a $1B+ SPAC, Schwartz reveals his plan to extend the XRP ecosystem through DeFi and capital markets.

The Ripple Effect

20 Oct 2025 — 13 min read

When David "JoelKatz" Schwartz announced his departure as Ripple's CTO after 13 years, he promised the XRP community an update on his "next adventure." On October 20, 2025, that promise was fulfilled in spectacular fashion: Schwartz revealed he would serve as strategic advisor to Evernorth, a newly formed $1 billion+ publicly traded XRP treasury company. The announcement connects three seismic October events—Schwartz's departure, a mysterious $500 million XRP transfer, and Evernorth's historic SPAC launch—into a cohesive narrative about XRP's institutional evolution.

"I Promised I'd Have an Update Soon"

"XRP community – I promised I'd have an update on my next adventure soon right? Well here's the start: I'll be a strategic advisor to @evernorthxrp, helmed by my friend @ashgoblue," Schwartz announced on X. "Evernorth was founded as a regulated, scalable investment vehicle to tap into opportunities for XRP in DeFi and capital markets, extending the entire XRP ecosystem. I'm excited to get started!"

XRP community – I promised I’d have an update on my next adventure soon right? Well here’s the start: I’ll be a strategic advisor to @evernorthxrp, helmed by my friend @ashgoblue.

Evernorth was founded as a regulated, scalable investment vehicle to tap into opportunities for… https://t.co/nxHzATwcIK
— David 'JoelKatz' Schwartz (@JoelKatz) October 20, 2025

The announcement clarifies what many in the XRP community had been wondering since Schwartz's September 30 departure announcement. While he pledged to step back from day-to-day duties at Ripple to spend more time with family and explore independent XRPL projects, the strategic advisor role at Evernorth represents the perfect bridge between his technical expertise and XRP's institutional future.

Schwartz's involvement lends immediate credibility to Evernorth's ambitious mission. As one of the original architects of the XRP Ledger alongside Arthur Britto, Jed McCaleb, and Chris Larsen, Schwartz possesses unparalleled understanding of XRPL's technical architecture, consensus mechanism, and potential use cases. His guidance will be instrumental as Evernorth navigates DeFi integration, validator operations, and institutional treasury management.

The Schwartz-Birla Connection: A Ripple Reunion

Evernorth is led by CEO Asheesh Birla, whom Schwartz describes as his "friend" and former colleague at Ripple. Birla previously served as a senior executive at Ripple, where he was instrumental in building and scaling the company's cross-border payments business into one of the most widely used blockchain-based financial services platforms. The existing relationship between Schwartz and Birla suggests seamless collaboration as Evernorth executes its treasury strategy.

"Having worked alongside Asheesh for many years, I'm fully confident in his and the team's ability to take XRP's presence in capital markets to the next level with Evernorth," said Ripple CEO Brad Garlinghouse, who will also serve as a strategic advisor alongside Schwartz and Chief Legal Officer Stuart Alderoty.

The advisory structure maintains operational independence while leveraging decades of combined expertise. Schwartz brings technical depth on XRPL's capabilities and limitations, Garlinghouse provides strategic vision on institutional adoption, and Alderoty offers regulatory and compliance guidance—a trifecta of expertise perfectly suited to Evernorth's mission.

Evernorth's Mission: "Tapping Into Opportunities for XRP in DeFi and Capital Markets"

As Schwartz noted in his announcement, Evernorth was founded as "a regulated, scalable investment vehicle to tap into opportunities for XRP in DeFi and capital markets." This mission statement encapsulates a fundamental shift in how XRP can be deployed beyond its traditional payment rails use case.

On October 20, 2025, Evernorth Holdings Inc. announced plans to go public through a merger with Armada Acquisition Corp II, a special purpose acquisition company, in a transaction expected to raise over $1 billion in gross proceeds. Upon closing in Q1 2026, the combined company will trade on Nasdaq under the ticker symbol "XRPN," creating what the company describes as the world's largest publicly traded XRP treasury.

Unlike passive exchange-traded funds that simply track XRP's price, Evernorth employs an active treasury management strategy designed to generate additional returns for shareholders. The company seeks to grow XRP per share over time by participating in institutional lending, liquidity provisioning, and DeFi yield opportunities on the XRP Ledger.

"Evernorth is built to provide investors more than just exposure to XRP's price," said CEO Asheesh Birla. "As we capitalize on existing TradFi yield generation strategies and deploy into DeFi yield opportunities, we also contribute to the growth and maturity of that ecosystem. This approach is designed to generate returns for shareholders while supporting XRP's utility and adoption. It's a symbiotic model: our strategy is designed to align with the growth of the XRP ecosystem."

This is precisely the type of "next adventure" that aligns with Schwartz's stated goals. In his September departure announcement, he mentioned plans to explore "other use cases for XRP (besides what Ripple is focused on)" and noted he'd been "spinning up my own XRPL node and publishing its output data, researching other use cases for XRP."

"Extending the Entire XRP Ecosystem"

Schwartz's emphasis on Evernorth "extending the entire XRP ecosystem" reveals the broader strategic vision. Rather than competing with Ripple's payment-focused business, Evernorth complements it by building institutional infrastructure for capital markets and DeFi applications.

The company's comprehensive strategy includes:

Validator Participation and Network Security: Operating XRP validators to strengthen the resilience and decentralization of the ledger—an area where Schwartz's technical expertise will prove invaluable.

DeFi Integration: Leveraging Ripple's RLUSD stablecoin as an on-ramp into XRP-based decentralized finance, enabling yield opportunities and broader adoption of XRP as collateral. Schwartz's understanding of XRPL's native DEX, AMM capabilities, and upcoming smart contract functionality positions him to guide this integration.

Market Development: Providing liquidity and participating in projects that expand XRP's real-world utility across payments, capital markets, and tokenized assets. This ecosystem-building approach aligns with Schwartz's passion for exploring new XRPL use cases.

Institutional Lending: Deploying XRP into institutional lending markets to generate yield while simultaneously increasing the utility and liquidity of the XRP ecosystem.

Schwartz's advisory role ensures technical decisions are grounded in deep XRPL knowledge. His expertise will be particularly crucial as Evernorth navigates validator operations, DeFi protocol integrations, and smart contract deployments. As one of the few people who understands XRPL's codebase at the foundational level, Schwartz can anticipate technical challenges and identify optimal solutions.

The $500 Million Mystery: Ripple's Contribution Revealed

The full picture of Evernorth's formation came into focus through careful blockchain observation. On October 17, 2025—just three days before the official announcement—Vet, a respected XRP Ledger dUNL validator, highlighted an unusual transaction.

"$500,000,000 worth of XRP was transferred to a fresh account by a Ripple labeled account today. It's not escrowed and the account has no multi sig, surprised given the account value, or any other account settings," Vet noted on X.

According to blockchain tracker Whale Alert, Ripple executed the transfer in three separate transactions over 24 hours: 72,999,998 XRP ($167.4M), 74,000,000 XRP ($169.7M), and 73,000,000 XRP ($167.5M)—totaling 220 million XRP worth approximately $500 million.

While Ripple frequently creates fresh accounts for XRP transfers, Vet expressed genuine surprise at the lack of multi-signature security protocols typically employed for such massive holdings. The timing and scale, however, make perfect sense in retrospect: this transfer appears to be Ripple's seed contribution to Evernorth's treasury, exactly as Bloomberg had reported would occur.

In a follow-up analysis, Vet explained why this distribution mechanism benefits XRP: "The proposed XRP treasury firm is a good distribution mechanism. Just as with the ETFs, XRP bought by those vehicles from Ripple's holdings also translates into more XRP that won't hit a crypto exchange immediately." He noted this structure removes supply from potential selling pressure while placing tokens with long-term institutional holders—"precisely what Vet believes is best if Ripple can distribute XRP to more entities with the mindset to hold these coins for the long term."

Heavyweight Institutional Backing

The transaction is expected to raise over $1 billion in gross proceeds, including $200 million from SBI Holdings and additional investments from Ripple, Rippleworks (an independent charitable foundation), and leading digital asset firms including Pantera Capital, Kraken, and GSR, with participation from Ripple co-founder Chris Larsen.

This strategic investor base provides immediate operational advantages that complement Schwartz's technical advisory role. Kraken brings exchange infrastructure and custody expertise, GSR offers market-making capabilities, Pantera provides institutional capital markets experience, and SBI contributes deep relationships in Asian markets where XRP has strong traction.

The transaction has been unanimously approved by both companies' Boards of Directors and is expected to close in Q1 2026, subject to customary conditions and shareholder approvals. Net proceeds will primarily fund additional open-market purchases of XRP beyond Ripple's initial $500 million contribution, with portions allocated to working capital, ecosystem development, and transaction expenses.

Why Schwartz's Involvement Matters for XRP

For the XRP community, Schwartz's strategic advisor role carries profound significance beyond the prestige of his involvement. His participation validates Evernorth's technical approach and provides assurance that the company's DeFi and capital markets strategies are feasible within XRPL's architecture.

Technical Validation: Schwartz wouldn't attach his name and reputation to a technically infeasible project. His willingness to serve as strategic advisor signals confidence that Evernorth's yield generation strategies, validator operations, and DeFi integrations can be executed successfully on XRPL.

Ecosystem Continuity: As Schwartz transitions from Ripple's day-to-day operations, his advisory role at Evernorth ensures his expertise remains actively deployed for XRP's benefit. Rather than simply retiring, he's channeling his knowledge into new institutional use cases.

DeFi Acceleration: Schwartz's deep understanding of XRPL's native DEX, AMM, and upcoming smart contract capabilities positions him to guide Evernorth's DeFi integration strategy. His involvement could accelerate the development and adoption of XRP-based DeFi applications.

Validator Best Practices: Having worked on XRPL's consensus mechanism from its inception, Schwartz can ensure Evernorth's validator operations follow best practices for security, decentralization, and network contribution.

Institutional Bridge: Schwartz's reputation in the broader crypto community lends credibility as Evernorth pitches institutional investors. His involvement signals this isn't a speculative play but a serious institutional infrastructure project.

In his September departure statement, Schwartz noted: "I truly enjoy this part—getting my hands dirty, talking to builders, coding for the pure love of it—and I'm really excited to get back to that." The Evernorth advisory role allows exactly that: hands-on engagement with builders creating new XRP use cases without the administrative burden of CTO responsibilities.

From Ripple CTO to Ecosystem Advisor: The Evolution

Schwartz's career arc tells the story of XRP's own evolution. He joined Ripple in 2011 as Chief Cryptographer, helping design the ledger that underpins XRP transactions. He was promoted to CTO in 2018 and became one of the most recognizable voices in the XRP community, defending the ledger's role through regulatory battles and technical upgrades.

His September 30 announcement captured this evolution: "As happens in one's life, I've been taking stock of my last 40 years. It's been a wild ride. I've gone from consulting for the NSA to watching the early stages of Bitcoin. Then, I met Arthur, Jed, and Chris and worked on coding the XRP Ledger. Now, I've spent more than 13 years at Ripple. It's been one of the greatest honors and experiences of my life, second only to my family."

The Evernorth role represents the next chapter: from building the foundation to helping scale institutional adoption. "Be warned, I'm not going away from the XRP community. You haven't seen the last of me (now, or ever)," Schwartz promised in his departure announcement. The Evernorth advisory position makes good on that promise.

XRP's Regulatory Clarity Enables Institutional Innovation

Schwartz's ability to openly serve as strategic advisor to a regulated, publicly traded XRP treasury vehicle demonstrates how far XRP has come from its regulatory challenges. Ripple's Chief Legal Officer Stuart Alderoty noted on X: "XRP has clear regulatory standing in the US, and it's no surprise that companies like @evernorthxrp are looking to focus on XRP."

The conclusion of Ripple's multi-year legal battle with the SEC in 2025 removed major obstacles to institutional adoption. The settlement established important legal precedents regarding XRP's status and opened doors for regulated entities to build sophisticated financial products around the asset.

XRP presents what Evernorth describes as "a compelling opportunity as one of the few digital assets with a recognized regulatory framework in the U.S. and a proven use case in powering global payments. With over a decade of uptime, deep liquidity, and a growing DeFi ecosystem, XRP is uniquely positioned for growth and broader institutional adoption."

Schwartz himself emphasized this maturation in a recent interview: "XRP has clear use cases where digital assets make sense—where volatility is either an advantage or not a disadvantage—and other cases where a more stable token like RLUSD or another stablecoin fits better." His nuanced understanding of when to deploy XRP versus stablecoins will inform Evernorth's treasury strategies.

Market Impact: Price, Volume, and Institutional Demand

XRP currently trades at approximately $2.47 as of October 20, 2025, with a market capitalization near $150 billion, making it the fifth-largest cryptocurrency. The token traded up 2.5% to $2.47 over the past 24 hours following the Evernorth announcement and Schwartz's advisory role reveal, suggesting positive market reception.

Ripple's $500 million XRP contribution combined with over $1 billion in new capital commitments represents unprecedented institutional demand. Vet's analysis of the distribution mechanism highlights the structural benefits: "Market participants are not gaining, as these entities won't buy on exchanges. However, they also don't have to face significant selling pressure if they can find entities that want to hold XRP long term."

Market analysts are watching how Evernorth's treasury accumulation will interact with other October catalysts, including pending SEC decisions on multiple XRP ETF applications expected between October 18-25. The combination of Evernorth's active treasury strategy, potential passive ETF approvals, and Schwartz's public endorsement through his advisory role could create sustained institutional demand.

Beyond immediate price implications, Schwartz's involvement validates XRP's technical capabilities for sophisticated financial applications. His willingness to stake his reputation on Evernorth's DeFi and capital markets strategies demonstrates confidence in XRPL's readiness for institutional-grade use cases.

Growing XRPL Ecosystem: Real-World Assets and DeFi

Evernorth's launch coincides with significant growth in the XRP Ledger ecosystem that will benefit from Schwartz's technical guidance. During the 30-day period ended October 13, total real-world asset value on XRPL increased by 4.3% to $364.9 million. More significantly, 30-day RWA transfer volume rose by approximately 42%, signaling active settlement rather than idle balances.

The stablecoin market cap on XRPL sits near $287 million and climbed by about 37% during the past 30 days. This expansion creates deeper liquidity pools for institutional participants like Evernorth to deploy capital into DeFi protocols and lending markets.

Evernorth's plan to leverage Ripple's RLUSD stablecoin as an on-ramp into XRP-based DeFi could accelerate this trend. RLUSD, which launched in late 2024, has scaled to reach $839.6 million outstanding across supported chains and offers institutional-grade compliance features that appeal to regulated entities—precisely the type of infrastructure Schwartz can help optimize for institutional treasury operations.

In a recent X post, Schwartz outlined his vision for institutional XRPL adoption, noting that privacy features and lending/borrowing protocols (XLS-66) are critical missing pieces: "In theory, institutions can then come on chain, get issued on-chain credentials like KYC AML, participate on the DEX with other users with the same status, put real world assets as collateral in the lending protocol on the XRPL, other institutions borrow against the collateral fully private with encrypted balances and transfers."

His advisory role at Evernorth positions him to help manifest this vision, as the company will be among the first institutional treasuries deploying capital into these emerging XRPL DeFi protocols.

What This Means for XRP Holders

For existing XRP holders, Schwartz's "next adventure" represents validation of the asset's long-term institutional thesis. His decision to dedicate his post-Ripple energy to advising an XRP treasury vehicle—rather than pursuing opportunities in Bitcoin, Ethereum, or other ecosystems—speaks volumes about his confidence in XRP's trajectory.

The Evernorth model—generating yield through institutional lending and DeFi participation—demonstrates that XRP has evolved beyond a simple transfer token. Schwartz's involvement signals these use cases are technically sound and institutionally viable, not speculative moonshots.

Investors should understand that Evernorth shares (XRPN) will offer different risk/return characteristics than holding XRP directly. While both benefit from XRP price appreciation, XRPN shareholders gain exposure to the company's yield strategies and ecosystem participation but also face equity-specific risks including management execution, regulatory compliance, and corporate governance.

Schwartz's advisory role mitigates technical execution risk while adding reputational credibility. His guidance ensures Evernorth's strategies are grounded in realistic assessments of XRPL's current capabilities and near-term roadmap rather than wishful thinking about vaporware features.

The Road Ahead: ETFs, Acquisitions, and Ecosystem Expansion

As October 2025 progresses, XRP faces multiple catalysts that Schwartz's involvement helps contextualize. SEC decisions on six XRP ETF applications are expected between October 18-25, with approvals potentially unlocking billions in additional institutional inflows. Combined with Evernorth's treasury building and Schwartz's technical validation, these developments create a compelling institutional adoption narrative.

Ripple's recent acquisitions further strengthen the ecosystem Evernorth will operate within. The company agreed to buy treasury management software provider GTreasury for $1 billion, marking significant expansion into the multi-trillion dollar corporate treasury market. This acquisition, combined with earlier purchases of prime broker Hidden Road and stablecoin platform Rail, positions Ripple as a comprehensive financial services infrastructure provider.

The November 2025 Ripple Swell Conference in New York will likely showcase how these pieces fit together—Ripple's infrastructure, Evernorth's treasury vehicle, RLUSD's stablecoin rails, and the growing XRPL DeFi ecosystem. Schwartz's participation as an Evernorth advisor rather than Ripple CTO symbolizes the ecosystem's maturation beyond dependence on a single entity.

Schwartz's Promise Kept: "I'm Excited to Get Started"

When Schwartz announced his Ripple departure, he promised to remain engaged with XRPL development and explore new XRP use cases. The Evernorth advisory role delivers on that promise in the most impactful way possible: helping scale institutional adoption through a regulated, publicly traded treasury vehicle backed by $1 billion+ in commitments.

"I'm excited to get started!" Schwartz concluded his Evernorth announcement. For the XRP community, that excitement is contagious. After 13 years building the technical foundation as Ripple's CTO, Schwartz now helps build the institutional superstructure that can take XRP mainstream.

His journey from coding the XRP Ledger to advising its largest institutional treasury vehicle mirrors XRP's own evolution from cryptocurrency experiment to institutional-grade financial infrastructure. As Schwartz embarks on his "next adventure," XRP holders can take confidence that the ledger's original architect remains committed to expanding its utility, adoption, and institutional legitimacy.

The October 2025 trifecta—Schwartz's departure from Ripple, the mysterious $500 million transfer, and Evernorth's historic launch—will be remembered as the moment XRP transitioned from a Ripple-centric project to a multi-stakeholder institutional ecosystem. And at the center of that transition stands David Schwartz, no longer CTO but still very much the technical conscience guiding XRP's institutional future.

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