XRP Plumbing Narrative Signals Valuation Shift

What to Know:

• XRP is being reframed as settlement infrastructure rather than another L1 competitor.
• Policy clarity and Ripple’s product maturity are driving this narrative change.
• Scaled, on-chain, direct bank-level settlement is the missing piece for XRP’s transformation.

XRP’s market perception is evolving from retail-driven speculation to a focus on its potential as settlement infrastructure. This shift is rooted in XRP’s ability to function as part of the liquidity and messaging stack for tokenized dollars. The critical question now is whether XRP can become an integral component of the financial plumbing that moves money.

A recent report by Digital Asset Solutions (DAS) highlights this transition, suggesting that Ripple’s ecosystem, strengthened by its regulated stablecoin, institutional tools, and a more stable policy environment, is positioning itself alongside established systems like SWIFT. The market is beginning to recognize the possibility of XRP becoming a key player in settlement infrastructure.

The alignment between U.S. policy and Ripple’s product architecture is a key catalyst for this narrative shift. The GENIUS Act, which established a federal regime for payment stablecoins, has transformed stablecoins into eligible settlement instruments.

Ripple’s RLUSD stablecoin, launched in late 2024 and custodied by BNY Mellon, fits well within this framework, providing a fiat-anchored asset within regulatory boundaries. The resolution of Ripple’s SEC case has also removed a significant impediment, clarifying XRP’s classification in secondary trading.

The launch of U.S. spot XRP ETFs has further reflected these policy shifts, attracting inflows from allocators who can now access XRP through regulated exchange-traded products. Ripple has also enhanced its institutional capabilities through strategic acquisitions, creating a comprehensive market-structure stack.

If XRP transitions into financial plumbing, its valuation must shift to reflect corridor economics rather than traditional crypto metrics. XRP’s value will be tied to transaction throughput, liquidity depth, and the ability to compress FX spreads.

The “Two-Asset Stack” model, with RLUSD as the fiat anchor and XRP as the neutral bridge asset, is central to this vision. The XRP Ledger’s speed and predictability make this model viable, though challenges remain, including the potential for stablecoins to displace the need for a bridge asset and the need to convert messaging users into settlement participants.

Despite the progress, scaled, on-chain, direct bank-level settlement remains the missing piece. Until banks begin moving value across distributed rails, XRP’s narrative shift remains a thesis rather than a transformation.

Ripple has built the infrastructure, policy has improved, and institutions have access channels that meet compliance standards. However, the ultimate success depends on whether financial institutions begin routing liquidity through these pipes, solidifying XRP’s evolution from a speculative token to essential financial plumbing.

Related: XRP Hint Signals Potential Listing

Source: Original article