Wall Street may be worried as XRP, the digital asset associated with Ripple, gradually approaches becoming a pillar of financial infrastructure. According to cryptocurrency analyst and commentator Pumpius, XRP's potential to reshape global liquidity is causing concern for institutions that control cross-border finance.

XRP was not created to target retail investors but was developed as a programmable liquidity tool for financial institutions. Designed for speed and scalability, the Ripple Technology Network has the potential to reshape existing payment systems as the XRP Ledger enables instant, trustless, cross-border transactions.

Ripple, the company behind XRP, is taking steps to become a legitimate part of the U.S. banking system. 36crypto previously reported that Ripple had applied for a national banking charter, which would allow the company access to the Federal Reserve's master accounts and Level 1 capabilities.

This would allow Ripple to bypass the usual bottlenecks in the banking system and liquidity pathways.

The company has also introduced RLUSD, a stablecoin backed by U.S. dollar reserves held at the Federal Reserve. If adopted, it would be a compliant alternative to current payment systems, creating faster and more efficient digital money transfer channels.

XRP Positioned as the Core Payment Layer in New Financial Rails

Circle, the issuer of USDC, is also seeking a banking charter, described by Pumpius as a coordinated move rather than a competition aimed at establishing a new financial rail system.

These emerging infrastructures comply with ISO 20022 standards, making them a suitable alternative to the aging SWIFT network.

Traditional banking models are considered one of the victims of cryptocurrency. Digital ledgers like XRPL allow organizations to exchange money without the need for money transfer intermediaries and with minimal fees and friction across borders with near-instant payments.

XRP's role as the core payment layer makes it even more strategic.

Wall Street Control Faces Unprecedented Pressure

According to Pumpius, what is happening is not just Ripple's expansion but a structural change in how money moves. Wall Street's fear stems from the realization that this new infrastructure operates beyond their traditional influence.

Ripple's progress, combined with regulatory readiness, indicates a shift in control that legacy companies did not foresee.

Ripple (XRP) could become a regulated and systematically applied tool for global payment transactions, potentially replacing a large part of Wall Street.

As these historical bottlenecks gradually disappear, Wall Street institutions that once controlled cross-border finance are witnessing a new structure being built that initially does not include them.

The increasing role of XRP in the evolving financial system is challenging long-standing structures. With Ripple seeking regulatory status as a bank and expanding into stablecoin issuance, Wall Street's concerns are believed to be related to the increasing independence and utility of this asset.