Durham University Research Paper Calls XRP a “Radical Form of Commodity Money”

Amid recent bipartisan legislation efforts toward legal clarity in the U.S., the XRP community has renewed discussions around XRP’s position as a commodity.

Specifically, SMQKE, a self-acclaimed researcher, recently called attention to an academic study that discussed XRP’s position in finance. The paper described XRP as a “radical form of commodity money,” adding to what the XRP community sees as evidence that the token is not a security.

XRP Has Two Major Roles in Finance

For context, the study, written by Ludovico Rella of Durham University, was published five years ago in the Journal of Cultural Economy. In his research, Rella discussed how money functions as a technological tool and a social system, using Ripple and XRP as the main examples. 

He called attention to Ripple’s journey from its early days as a mutual credit system, which relied on trust between users, to its current form as a blockchain-based payment solution focused on speed, liquidity, and efficiency. During this change, XRP moved from a community-based credit token to a bridge asset for moving money across borders.

A Radical Form of Commodity Money

According to Rella, XRP is “a radical form of commodity money” designed to behave like digital gold, being a self-contained asset that holds value on its own. 

Importantly, it does not depend on intermediaries, company shares, or liabilities. Moreover, it exists independently, pre-mined, and transferable between any two addresses without restriction. Rella called this idea “digital metallism.”

Rella argued that XRP is more than a financial tool, as it reflects two opposing visions of money. Specifically, one focuses on community and trust, while the other values efficiency and liquidity. As a result of bridging these two ideas, XRP exists as both a technological innovation and a symbol of how money continues to develop in modern finance.

For context, SMQKE spotlighted the Durham University paper following a bipartisan draft bill from the U.S. Senate Committee on Agriculture, which seeks to settle how digital assets fit into existing laws. 

Bipartisan Discussion Draft on Regulatory Clarity 

Called the Bipartisan Market Structure Draft, the proposal wants to create a clear framework that divides oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

The bill would place digital commodities like XRP and Bitcoin under CFTC authority, while the SEC would continue regulating securities. Lawmakers believe the proposal could end years of confusion over how cryptocurrencies should be treated under federal law.

Within the XRP community, many see this as a major step forward. Commentator Arthur said the bill could confirm XRP’s place as a digital commodity, building on the 2023 court ruling that found XRP was not a security. 

He noted that XRP functions as a utility token, as it is used for payments, liquidity, and settlements, not as an investment in Ripple or any company. He added that the draft bill effectively puts that reality into law, recognizing XRP as part of the CFTC’s oversight rather than the SEC’s.