Jake Claver, CEO of Digital Ascension Group, presents a strategic approach to crypto holdings, particularly XRP. He outlines a framework for converting short-term gains into sustainable, long-term income for families. This method prioritizes planning and tax efficiency over impulsive trading, enabling holders to preserve capital and generate consistent cash flow without sacrificing future growth potential. Claver emphasizes the importance of developing a solid plan before price fluctuations occur. Many investors, he notes, liquidate holdings as soon as they hit targets, incurring hefty taxes and potentially losing out on long-term opportunities. Instead, disciplined planning can protect capital, allowing for ongoing income generation while maximizing asset appreciation.
Claver highlights a key advantage of leveraging institutional lending to generate liquidity without selling your XRP. Borrow against appreciated assets rather than converting them to fiat currency. He suggests that investors who expect substantial valuation increases may borrow up to 30% of their holdings as collateral, providing access to funds for living expenses, investments, or business ventures while preserving the growth potential of the original asset.
Claver stresses the importance of sound legal and tax structures. To avoid unnecessary risk, he recommends establishing appropriate legal entities like limited liability companies or trusts and utilizing institutional custody solutions. These measures can provide creditor protection, clearer succession planning, and easier access to banking services for high-net-worth portfolios. Incorrect structuring may void protections and increase legal exposure.
He emphasizes the need for operational controls typically used by institutional investors, including multi-signature custody, independent audit trails, segregation of duties, and working with custodians that provide insurance and compliance reporting.
Claver illustrates his points using a hypothetical: An investor holding 10,000 XRP at an anticipated $100 price point would have nominal holdings worth $1 million. Rather than selling the entire position, he suggests borrowing a portion of this value, say $300,000, using XRP as collateral to access funds for living expenses, investments, or business opportunities. This strategy minimizes capital loss and preserves potential gains while allowing the underlying asset to participate in any further market upside.
To clarify the risks, Claver points out that borrowing against volatile assets requires careful management of margins and contingency plans to mitigate price declines. Lenders may demand additional collateral or liquidate positions if the value falls below maintenance thresholds. Legal structures and custody arrangements come with associated costs and administrative requirements. He emphasizes that these strategies are not suitable for all holders, particularly those with smaller positions, urging them to seek expert advice from financial professionals before implementing such measures.
Claver concludes by highlighting the difference between a one-time windfall and enduring family wealth—the power of strategic execution. By adopting sound legal structures, utilizing institutional-grade custody solutions, and leveraging lending facilities responsibly, investors can potentially access ongoing liquidity without selling their core holdings and secure long-term financial well-being for themselves and their families.