Anticipated shift for XRP: Expected developments in July as per investors' expectations for a pivotal declaration
In a significant development for the cryptocurrency market, Ripple, the global payments solutions provider, has applied for a national banking license with the Office of the Comptroller of the Currency (OCC). This move could potentially strengthen XRP's market position and price outlook by embedding the company deeper into the traditional financial infrastructure under federal oversight.
Key implications of this application include:
- Increased Legitimacy and Trust: The national banking license would place Ripple under federal supervision in addition to existing New York Department of Financial Services oversight. This dual regulatory framework aims to set a higher standard of transparency and compliance for Ripple’s stablecoin RLUSD and by extension XRP.
- Enhanced Institutional Adoption: Approval of the bank charter, combined with Ripple’s subsidiary Standard Custody & Trust Company securing a Federal Reserve master account, would allow direct custody of RLUSD reserves at the Federal Reserve. This is expected to bulletproof stablecoin backing, making it more attractive for banks and institutional players for fast, low-cost cross-border payments via XRP.
- Competitive Positioning: Analysts note that this move would place Ripple alongside traditional banking giants like JPMorgan in regulatory standing and financial infrastructure access. This institutional-level credibility could translate to increased demand for XRP as utility tokens supporting Ripple’s expanding financial network.
- Potential Price Impact: Following the announcement of Ripple’s application, XRP’s price rose modestly (about 3%), reflecting market optimism. However, experts from the crypto community and market commentators caution that while regulatory approval is a bullish indicator, XRP’s price trajectory remains uncertain pending actual license grant and broader adoption.
In another significant development, XRP has been included in Grayscale's Digital Large Cap Fund, a milestone for the cryptocurrency. Analysts believe the SEC's formal recognition of XRP in the Grayscale's Digital Large Cap Fund could attract institutional capital en masse. The allocation of XRP in the fund is 4.8%.
Regarding ETF inclusion, although no specific search results directly mention an XRP ETF application in this dataset, historically, exchange-traded fund approvals tend to increase asset accessibility to retail and institutional investors, often leading to positive price pressures and enhanced market profile. If XRP were to gain ETF inclusion alongside its regulatory progress, this would likely amplify liquidity and mainstream investment interest.
Countries like Colombia, Montenegro, and Butan are exploring pilots with this technology, indicating a growing global interest in XRP. Ripple has developed a private version of the XRP Ledger to facilitate transfers between central bank digital currencies (CBDCs). The XRP Ledger can process tens of thousands of transactions per second, with energy efficiency 61,000 times greater than other blockchain networks.
By 2026, projections suggest that the price of XRP could stabilize above $5. If more favorable conditions arise, such as the approval of spot ETFs and a significant increase in institutional adoption, the price could rise to between $6 and $10 by the end of this year. Experts estimate a 95% probability that the SEC will approve spot-specific XRP ETFs by the end of the year.
July is expected to be an exciting month for XRP due to regulatory announcements, the introduction of new financial products, advances in CBDCs, and expansion in the derivatives market. Ripple has also applied for a master account at the Federal Reserve, and if approved, would become one of the few crypto firms with dual supervision: state (through the NYDFS) and federal.
Brad Garlinghouse, CEO of Ripple, believes direct access to the Federal Reserve would allow Ripple to operate without intermediary banks, offering real-time institutional liquidity. In a moderate scenario, analysts predict that XRP could maintain an average range between $2.50 and $3.50.
In conclusion, Ripple’s national banking license application and related federal integration efforts position XRP for a stronger market foundation, institutional adoption, and regulatory clarity, factors that could improve its future price stability and growth prospects. However, tangible effects on XRP’s price depend on regulatory approvals and market adoption outcomes yet to be realized.
- The national banking license application by Ripple indicates a potential increase in institutional adoption of XRP, as approval and direct custody of RLUSD reserves at the Federal Reserve might make it more attractive for banks and institutional players for fast, low-cost cross-border payments via XRP.
- The inclusion of XRP in Grayscale's Digital Large Cap Fund could potentially attract institutional capital en masse, which, combined with regulatory progress and ETF inclusion, could amplify liquidity and mainstream investment interest in XRP.
