Jake Claver Reveals the Secret to Protecting Your XRP—It's Not What You Think

You’ve stored your XRP in a cold wallet and feel secure. But here’s what most holders miss: technical security and legal security are two entirely different things. According to Jake Claver, a prominent figure in crypto legal strategy, the real vulnerability isn’t your hardware—it’s your ownership structure. His recent guidance on X has sparked important conversations about what actually protects long-term crypto holdings.

Why Your Cold Wallet Isn’t Enough

Everyone talks about offline storage as the ultimate security measure. And technically, they’re right. Funds in cold wallets are shielded from hacking and exchange failures. But Jake Claver points out that mature crypto portfolios face a different threat entirely. The moment you hold digital assets in your personal name, you become exposed to personal liability. That means lawsuits, court judgments, creditor claims, and ownership disputes can all threaten your holdings—regardless of where they’re stored.

This shift in thinking is crucial. When you’re holding XRP long-term, the bigger risk isn’t a lost private key. It’s a court order demanding your crypto as part of a settlement or judgment.

Jake Claver’s LLC Strategy Explained

Rather than moving your XRP between wallets and creating transaction risk, Jake Claver recommends establishing a limited liability company (LLC) to hold the assets. Here’s how it works: your XRP becomes an initial capital contribution to the LLC. You then document this transfer in the LLC’s operating agreement, recording the wallet address, asset type, token quantity, and fair market value at the time of transfer.

The key step Claver emphasizes is notarization. A notarized operating agreement creates an official, time-stamped record proving when the LLC legally acquired your XRP. This documentation happens entirely off-chain—your tokens never move. Only the legal ownership structure changes.

The Critical Role of Proper Documentation

Why does notarization matter so much? Because it establishes proof of ownership without requiring any on-chain activity. If someone later challenges your claim to those assets, the notarized document serves as evidence that the LLC—not you personally—owns the XRP. This distinction is what Jake Claver says transforms casual holdings into legally protected assets.

The operating agreement itself becomes the shield. Done correctly, it stops liability from reaching your crypto while you hold everything in your original, secure cold wallet.

Asset Separation: Why It Matters

Jake Claver stresses one critical principle: never mix crypto with other business assets in the same LLC. If your LLC holds both real estate and digital currencies, a lawsuit tied to the property could expose your entire portfolio—including XRP—to claims and creditor liens.

His recommendation is straightforward: create a dedicated LLC for crypto holdings alone. Keep real estate in separate entities. Keep operating businesses in different structures. This compartmentalization ensures that legal trouble in one area doesn’t cascade to your digital assets. In states with weaker creditor protections, this separation becomes even more essential.

For those with existing LLCs that already hold other assets, Jake Claver emphasizes updating the operating agreement to clearly define how digital assets fit into the ownership structure. Without explicit provisions, the legal protection remains incomplete.

A Hands-Off Approach That Works

Once everything is properly structured, Jake Claver’s framework becomes genuinely hands-off. Your XRP stays in your cold wallet. The tokens never move. The blockchain never sees a transaction. You simply change the legal owner from your name to the LLC’s name through documentation.

This reframes asset protection entirely—shifting it from a technical challenge into a legal one. For XRP holders serious about long-term security, Jake Claver’s strategy offers simplicity without compromise.