XRP Outlook Brightens as Ripple Pursues Banking License

XRP could be on the cusp of a major transformation as Ripple seeks a national banking license, potentially unlocking new avenues for institutional adoption and liquidity. The move signals Ripple’s ambition to blur the lines between traditional banking and blockchain, setting the stage for significant developments in how XRP is utilized.

Ripple’s CEO, Brad Garlinghouse, recently confirmed that the company has submitted an application for a national bank charter with the Office of the Comptroller of the Currency. This follows their acquisition of a BitLicense from the New York Department of Financial Services, signaling Ripple’s deepening integration into the regulatory framework of both state and federal financial ecosystems.

Garlinghouse emphasized Ripple’s longstanding commitment to compliance and transparency, noting that the company is raising the bar, particularly in the emerging stablecoin space. He further revealed that Ripple’s subsidiary, Standard Custody, also applied to the Federal Reserve for a master account. This would provide Ripple with direct access to central bank facilities, allowing them to store reserves for their RLUSD stablecoin at the Federal Reserve itself.

Community analysts have already begun speculating on what this could mean for XRP. A well-known voice in the XRP community, XRP Investing, argued that a national banking license would elevate Ripple to the level of established financial entities like JPMorgan. Moreover, Fed-level access could lend RLUSD unmatched credibility through full regulatory oversight, making it more attractive for institutional use. This could drive more banks to employ XRP for cross-border settlements, harnessing its speed and low cost.

So how high could XRP rise under such enhanced circumstances? ChatGPT provided an analysis based on four separate valuation models—each evaluating XRP through a different strategic lens.

Institutional Utility Model

The model starts by assuming Ripple processes just 10% of SWIFT’s $150 trillion annual payment traffic using XRP—an ambitious yet not implausible target. Factoring in a turnover rate of 25 times per year through crypto settlements, that volume would need approximately $600 billion worth of XRP to function effectively. With around 55 billion XRP circulating, each token would have a utility-based value of approximately $10.91. Note, this estimate solely reflects functional usage, not market speculation.

RLUSD & Fed Access Model

The second model focuses on stablecoin integration. Here, Ripple’s RLUSD stablecoin is assumed to match USDC’s 2024 market cap of $32 billion, with XRP bridging half of the resulting $100 billion in annual on-chain transactions. With an annual turnover rate of 20, XRP would need to provide $5 billion in liquidity. By layering on a “trust premium” due to comprehensive regulatory oversight, XRP’s value could soar to around $13.65 per token.

Tokenized Asset Market Share Model

The third model explores XRP’s potential in the tokenization of real-world assets like bonds and real estate, a market projected to reach $16 trillion by 2030. If Ripple captures a 3% foothold and XRP underpins 25% of that transactional framework, XRP must sustain $120 billion in token flows. Dividing by the circulating supply, and incorporating a speculative multiplier of 10 due to institutional reliability, this yields a token valuation of approximately $21.80.

NVT-Based Valuation Model

The final model uses the Network-Value-to-Transaction (NVT) ratio to estimate XRP’s prospective worth. Assuming XRP handles $30 billion in daily settlement volumes through institutional-scale adoption, applying a typical NVT ratio of 27.5 gives an overall network value near $900 billion. This valuation translates to around $16.36 per coin.

Each of these models signals a potentially significant appreciation in XRP’s value, should Ripple secure banking credentials and achieve deeper alignment with financial institutions. Beyond speculative upside, these forecasts underscore XRP’s evolving role not just as a digital asset, but as a fundamental layer in tomorrow’s banking infrastructure.

Related: Expert Advice: Sell XRP If You’re Confused

While price projections should be interpreted with caution, the consistency across multiple valuation frameworks suggests XRP may be well-positioned for structural growth in a compliant, increasingly digitized financial landscape.