Arizona is once again breaking the mold with an interesting approach, at least for XRP Ripple holders. While other states are tentatively exploring Bitcoin, a bold proposal in the Grand Canyon State aims to create a digital asset reserve fund specifically including XRP and DigiByte.
Supported by several lawmakers, the proposal aims to expand state holdings beyond a single dominant asset. Rather than immediately converting these assets into dollars, the state would hold them in the hopes that they could provide long-term value or practical use.
The move reflects a shift in how some state governments view digital assets, given their potential functionality as well as their role as a store of value.
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Arizona chooses XRP and DigiByte as approved assets
Most government crypto bills follow a simple script: buy Bitcoin, hold Bitcoin. Arizona’s proposal takes a different approach by expanding the range of approved assets. The legislation allows the state to hold specific digital assets, explicitly naming assets such as XRP and DigiByte, in a strategic digital asset reserve.
This builds on Arizona’s momentum toward a Bitcoin reserve, but adds a layer of complexity by validating altcoins. The focus is often on modernizing how the state handles unclaimed property and seized property. Rather than converting everything into inflationary fiat currency, the state keeps the asset.
XRP added to Arizona digital reserve bill. After a 4-2 committee vote, the Arizona state legislature introduced a bill that adds $XRP as an eligible asset in the proposed strategic reserve fund for digital assets
pic.twitter.com/qcDUXPeyDP
– XRPcryptowolf (@XRPcryptowolf) February 22, 2026
Why these two? It probably depends on the utility. XRP’s institutional settlement strategy makes it a logical choice for public finances, which rely heavily on cross-border efficiency. We are already seeing major financial players moving in this direction, such as Société Générale launching stablecoins on the XRP Ledger.
And DigiByte? As a decentralized and secure blockchain known for its speed, lawmakers are likely showing that they are not just interested in market capitalization. They look at technical merit.
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How the reserve actually works
An interesting aspect of this legislation is the financing mechanism. The reserve is largely financed by assets that the state already has. This includes unclaimed digital property and assets potentially seized in criminal forfeitures. Under the proposal, the State Treasurer has the authority to hold these assets rather than liquidate them.
Is it risky? Of course. Crypto is volatile. But proponents argue that holding these assets is a fiduciary duty to protect against inflation. This is essentially about diversifying the state’s portfolio so that it is not 100% exposed to the fall of the dollar. With strict custody standards in place, it seems less like a game of chance and more like a modernization of the state savings account.
We will monitor whether Governor Hobbs approves the expansion of these definitions during the upcoming session. If Arizona succeeds, expect other states to start adding altcoins to their balance sheets soon.
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The post Arizona Bill Proposes State Reserve Fund Including XRP and DigiByte appeared first on 99Bitcoins.
