With Ripple officially seeking a banking license, what is the potential impact of approval on the price of $XRP ?

Ripple applies for a banking license

It is worth noting that Ripple continues to deepen its involvement in mainstream finance. CEO Brad Garlinghouse announced yesterday that Ripple has applied for a national bank charter from the Office of the Comptroller of the Currency.

Given that Ripple already holds a #BitLicense license from the New York Department of Financial Services, the company would receive state and federal oversight if regulators approve the charter. Garlinghouse emphasized that Ripple has built its reputation on compliance and now wants to raise the level of trust for stablecoins.

It was also revealed that through its subsidiary StandardCustody, Ripple has filed another application with the Federal Reserve for a master account. Importantly, direct access from the Federal Reserve would allow Ripple to store its stablecoin reserves #RLUSD at the central bank itself.

Potential impact on $XRP and RLUSD

The news prompted a comment from the well-known community analyst 'XRPInvesting'. He argued that the national bank charter would place Ripple alongside banking giants like JPMorgan, giving RLUSD and XRP greater legitimacy.

It added that the master account would mean indispensable support for RLUSD, due to direct custody with the Federal Reserve. According to it, the combination of OCC regulation, NYDFS oversight, and Federal Reserve connectivity would create a stablecoin designed for institutions and allow banks to adopt $XRP

for fast and low-cost cross-border payments.

However, the impact of this bullish development on XRP's price remains uncertain. Therefore, to measure how high XRP's price could rise, we asked ChatGPT to conduct an assessment. Interestingly, the chatbot provided four valuation models to evaluate the range that XRP could reach.

ChatGPT presents the institutional utility model and the RLUSD + Fed access model

ChatGPT first highlighted the institutional utility model. In this case, #Ripple captures one-tenth of the annual S.WIFT message volume of $150 trillion by routing payments through XRP.

Given that cryptocurrency settlements occur multiple times a year, the model uses a velocity factor of 25. Notably, under these assumptions, the network would require approximately $600 billion of #XRP in circulation to service this flow.

XRP Valuation Model on Institutional Utility

XRP Valuation Model based on Institutional Utility

At the same time, ChatGPT assumed that XRP has a circulating supply of 55 billion tokens. Based on this assumption, each XRP token would be valued at approximately $10.91. However, this estimate ignores speculative demand, so it represents a baseline for utilities only.

Next, ChatGPT presented the RLUSD + Fed access model, which focuses on stablecoin flows. It assumed that RLUSD matches the market value of USDC for 2024 at $32 billion, and that XRP covers half of RLUSD transfers on-chain, approximately $100 billion annually.

XRP Valuation Model on RLUSD Backing

XRP Valuation Model based on RLUSD Support

With a turnover of 20, XRP should provide liquidity of $5 billion. The model then adds a trust premium equivalent to 15 times because regulators will oversee every loop in the chain. Ultimately, the multiple raises the price of XRP to around $13.65.

Token models and NVT

At the same time, the third model, a token market share model, assesses XRP's role in transferring real-world tokenized assets. In this context, analysts expect tokenized bonds, real estate, and other instruments to exceed $16 trillion by 2030.

XRP Valuation Model on Tokenization

XRP Valuation Model based on the token

If Ripple captures 3% of this market, and XRP remains on-chain for its quarter, the token would need to cover $120 billion. Dividing this amount by the circulating supply gives $2.18, but ChatGPT applied an institutional and speculative factor of tenfold, as financial companies often estimate perfectly compliant rails. Notably, this adjustment pushes XRP to around $21.80.

Finally, ChatGPT highlighted the Network Value to Transaction (NVT) model that directly links market value to expected on-chain activity. The chatbot predicts daily XRP settlement volumes of $30 billion once banks join Ripple Payments on a wide scale.

NVT XRP Valuation Model

NVT Valuation Model for XRP |

In a related context, high-performance blockchains typically trade at an NVT ratio of between 25 and 30. Now, by multiplying the midpoint by the daily trading volume, we arrive at a total network value of approximately $900 billion. Distributing this over the current total trading, the price of each coin approaches $16.36.

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