$XRP A recent tweet by crypto researcher SMQKE has drawn attention to new information concerning XRP’s recognition within global banking standards.

The tweet, which included a video by XRP YouTuber and crypto enthusiast Working Money, referenced an official Basel Committee letter dated August 19, 2025.

The document from the Bank for International Settlements (BIS) identifies a select group of cryptocurrencies, including XRP, as compliant assets under liquidity classifications set out by Basel III regulations.

In the video, Working Money explained that the Basel Committee’s letter classifies certain digital assets as Group 2A crypto assets. Under the committee’s framework, these assets must meet three hedging recognition criteria to be placed in this category.

Only Bitcoin, Ethereum, XRP, Solana, and Dogecoin were listed as meeting these requirements. This classification is significant because it means banks can use these assets to meet liquidity requirements established under Basel III standards.

✨Role of XRP in Liquidity Management

According to Working Money, XRP’s potential role extends beyond being a listed compliant asset. He emphasized that XRP allows banks to consolidate reserves into a single bridge asset, which reduces reliance on multiple Nostro accounts and cuts foreign exchange and treasury costs.

The video highlighted how this streamlines liquidity management and lowers infrastructure expenses associated with processing cross-border payments.

Working Money pointed out that Ripple has long envisioned XRP being used as a universal bridge asset, capable of providing banks with liquidity on demand once the market capitalization and trading volumes grow sufficiently.

This aligns with Ripple’s stated goal of reducing opportunity costs for financial institutions by replacing or lowering their dependence on lower-yielding high-quality liquid assets required under Basel III regulations.

✨Industry Perspectives and Academic Commentary

The video also cited academic perspectives on the potential role of Ripple and XRP in financial infrastructure. Working Money referenced comments from a professor at the University of Basel, who stated that Ripple has a strong chance of replacing parts of the existing financial infrastructure.

This view was reinforced by a passage he quoted from earlier research shared by SMQKE, which suggested that whenever protocols and interfaces can be unified and databases synchronized more efficiently, distributed ledger technology such as Ripple’s should be implemented.

Examples of centralized systems mentioned in that research included Ripple and the R3 consortium, with both being described as having the potential to replace parts of the financial system.

These observations support the argument that Ripple’s technology and the adoption of XRP as a liquidity tool are not just theoretical but are increasingly being integrated into broader discussions of regulatory frameworks and banking practices.

The Basel Committee’s inclusion of XRP in its list of Group 2A liquidity-compliant assets represents a significant step for the cryptocurrency’s role in global finance. As Working Money emphasized, this development shows progress toward real-world utility for XRP within regulated banking structures.

By enabling banks to simplify liquidity management and cut costs, XRP’s classification as a compliant asset could further support its use as a bridge currency in cross-border settlement.

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