Ripple's token may be the most attractive asset in the crypto market. Often overlooked due to a lack of clear applications, it has quietly risen to become the third-largest project by market capitalization, currently valued at 168 billion USD. Just in the past week, XRP has increased over 30%, outperforming both Bitcoin (+10%) and Ether (+21%).
What drives this growth? The combination of strong liquidity, a loyal community, and most importantly, alignment with institutional investment adoption.
As the bull market is driven by the traditional finance sector, XRP has found itself in the right place at the right time.
XRP finds its niche market
The XRP Ledger (XRPL) is a permissioned blockchain designed for interbank transactions, currently used by several major banks. However, most popular XRPL products do not require holding XRP, which raises questions about its tokenomics.
Currently, several Web3 projects are being built on XRPL. However, their scale is still not significant compared to leading smart contract platforms like Ethereum or Solana, partly due to XRPL's lack of programmability.
However, the 2025 cycle is not about hype regarding Web3. It focuses on institutional investment adoption, regulatory clarity, and capital flows. And that is where Ripple (XRP) holds a unique position.
Ripple's ambitions for institutions
On July 1, the U.S. Federal Reserve (Fed) approved ISO 20022, a new global standard for financial messaging services. This follows similar moves by other major global payment networks like SWIFT.
Ripple has adhered to this standard since 2020, when it became the first DLT company to join the ISO 20022 organization. This position may now benefit the project.
Volante Technologies, a provider of Fedwire technology, recently confirmed that organizations using its Fedwire-as-a-Service product can choose XRP for payments.
Along with Fedwire and ISO 20022, RippleNet creates a conducive pathway for the practical use of XRP in regulated financial infrastructures.
Moreover, Ripple is in a good position to benefit from the growth of the stablecoin market. In December 2024, the company launched RLUSD, a USD-pegged stablecoin, whose market capitalization has since surpassed 517 million USD.
To bolster compliance, on July 2, Ripple Labs CEO Brad Garlinghouse confirmed that the company has applied for a national trust bank charter from the OCC. Previously, Ripple Labs also applied to open a Fed Master account alongside Standard Custody, a company acquired in February 2024. If approved, this will allow Ripple to hold RLUSD directly with the Fed.
Strategic interest
The market clearly appreciates Ripple's ambitions. XRP's current daily trading volume exceeds 11 billion USD, more than double that of Bitcoin when adjusted for market capitalization. Open interest (OI) in the futures market currently stands at a record 8.1 billion USD, indicating that speculative momentum remains strong.
High liquidity and dense trading volume, along with XRP's behavior, make this token a relatively “easy” trade in the crypto field.
However, there has been a shift from pure speculation to strategic investment, with some public companies building XRP reserve funds.
Trident and Webus, two companies listed on Nasdaq, have announced plans to allocate 500 million USD and 300 million USD to XRP reserves, respectively. Smaller firms like VivoPower and Wellgistics Health, also listed on Nasdaq, have also participated, intending to purchase 121 million USD and 50 million USD worth of XRP, respectively.
Although these allocations are still relatively small compared to the 102 billion USD holdings of Bitcoin companies, they mark an important trend: shaping XRP as a reserve and payment asset.
If these companies go beyond merely holding and start using XRP for cross-border payment processes, as Webus intends, a genuine collaboration could emerge.
Yesterday, the NYSE approved the listing of ProShares Ultra XRP ETF, based on XRP futures contracts. Although it has less impact on prices compared to spot funds, this shows increasing interest from institutions. The U.S. Securities and Exchange Commission (SEC) is still considering the approval of spot XRP ETFs.
Meanwhile, Canada has taken a step ahead. On June 18, the spot XRP ETFs from 3iQ (XRPQ and XRPQ.U) began trading on the Toronto Stock Exchange, quickly amassing over 50 million USD in assets under management (AUM).
Whether XRP's utility affects its valuation or not, it is clear that Ripple has made a significant impact in the market. The company has complied with regulations and created a token that is easily accepted by institutions, something that most crypto projects struggle to achieve.
XRP could benefit from the GENIUS Act
XRP surged over 6% in the past 24 hours after the U.S. House of Representatives voted to pass the GENIUS Stablecoin Act and the CLARITY Act. This price increase has pushed XRP to just about 9% away from its all-time high (ATH) as this altcoin continues its strongest rally in months.
Ripple's ecosystem will directly benefit from the passage of the bill. The company has set up its RLUSD stablecoin to comply with the proposed rules in the GENIUS Act.
The GENIUS Act creates a federal legal framework for stablecoins, requiring full reserves, regular audits, and issuance licensing through U.S. regulatory agencies.
Ripple has taken steps to meet these requirements. The company has applied for a national trust bank charter and established a master account with the Federal Reserve.
The company also announced BNY Mellon as the official custodian for RLUSD reserves. The assets include U.S. Treasury bills, cash, and money market funds.
If GENIUS is passed, Ripple's RLUSD could qualify as a federally compliant stablecoin, giving Ripple a pioneering advantage in issuing regulated stablecoins.
This makes XRP more useful as a liquidity bridge between managed assets.
XRP and the growth of RLUSD
XRP plays a key role in Ripple's liquidity products. As the adoption of RLUSD increases, XRP can facilitate real-time foreign exchange swaps and stablecoin conversions.
Ripple has supported stablecoin operations on the XRP Ledger. The GENIUS Act could help boost on-chain transaction volume, increasing demand for XRP.
This victory also diminishes the SEC's influence. The GENIUS Act delegates oversight to the Department of Treasury and the OCC, bypassing the SEC's authority.
This shift helps promote the narrative of XRP as a utility token rather than a security. XRP's latest price surge also indicates that investors view GENIUS as a turning point for Ripple's regulatory transparency.
In summary, the GENIUS Act promotes Ripple's banking and stablecoin strategy, bolstering the legal foundation of RLUSD and opening the door for expanded regulation in the U.S.
Therefore, XRP is gaining momentum from both legal transparency and increasing on-chain utility. With a vote expected this week, XRP may soon test its ATH.