Arizona also breaks the mold in an interesting way, at least for XRP Ripple owners. While other states are still testing Bitcoin, a bold proposal in the Grand Canyon State aims to establish a digital asset storage fund that specifically combines XRP and DigiByte.
Supported by several lawmakers, the proposal aims to expand the state’s property beyond one primary property. Rather than converting these assets into dollars immediately, the government will store them in the expectation that they will provide long-term value or practical use.
The move reflects a shift in the way some state governments view digital assets, considering their potential functionality alongside their role as a store of value.
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Arizona Selects XRP and DigiByte as Authorized Assets
Most government crypto loans follow a simple script: buy Bitcoin, hold Bitcoin. Arizona’s proposal takes a different approach by expanding the scope of authorized assets. The law allows the state to hold certain digital assets, specifically naming assets like XRP and DigiByte, in the Strategic Digital Asset Reserve.
This builds on Arizona’s push for a Bitcoin reserve, but adds a layer of complexity by validating altcoins. Most of the time the focus is on how the state handles unclaimed property and seized property. Rather than convert everything into inflationary fiat money, the government keeps the assets.
XRP was added to the Arizona digital reserve bill. After a 4-2 committee vote, the Arizona State Legislature advanced an additional bill $XRP as an eligible asset in the proposed Digital Assets Strategic Reserve Fund
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– XRPryptowolf (@XRPcryptowolf) February 22, 2026
Why these two? It may come down to usage. XRP’s institutional settlement strategy makes it a logical fit for government funds, 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 scalable, secure blockchain is known for its speed, legislators are likely to show that they are not just looking at market cap. They look for technical merit.
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How the Reserve Actually Works
An interesting part of this law is the funding mechanism. The reserve is largely funded by assets that the government already owns. This includes unclaimed digital assets and assets that may have been seized through criminal forfeiture. Under the proposal, the Treasury has the authority to hold these assets rather than liquidate them.
Is it dangerous? Of course. Crypto is volatile. But supporters argue that holding these assets is a reliable hedge against inflation. Essentially, diversifying the country’s portfolio so that it is not 100% exposed to a depreciating dollar. With strong child protection regulations in place, it’s less like gambling and more like modernizing the country’s savings account.
We will be watching to see if Governor Hobbs signs off on expanding these definitions in the future. If Arizona succeeds here, expect other states to start adding altcoins to their balance sheets soon.
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The post Arizona Bill Proposes State Fund Including XRP and DigiByte appeared first on 99Bitcoins.
