XRP Price: Tapping into the FX Market

What to Know:

• The stablecoin market’s integration with the $9.6 trillion daily FX market is gaining traction, potentially benefiting XRP and Ripple’s RLUSD.
• Despite stablecoins reaching $33 trillion in transaction volume in 2025, only 1% represents real-world payments, indicating substantial room for growth.
• Ripple’s strategic positioning with RLUSD and partnerships like the one with LMAX could enable XRP to capitalize on this convergence, potentially driving its price to double digits.

The potential convergence of stablecoins and the foreign exchange (FX) market has captured the attention of institutional investors, particularly regarding the implications for XRP and Ripple. While the anticipated merger has been gradual, recent developments suggest significant opportunities for growth. Ripple’s strategic initiatives, including its stablecoin RLUSD and partnerships with key players like LMAX, position it to capitalize on this evolving landscape. The massive daily turnover in the FX market presents a substantial target for stablecoins, with even a small percentage of market share potentially leading to significant gains for XRP.

Stablecoin Integration with FX: A Slow Burn

A recent Risk.net report shed light on the progress of stablecoins in penetrating the traditional FX market. Stablecoins offer the promise of instant, 24/7 transfers, addressing the FX market’s pain points of slow settlements and time-zone delays. While stablecoin transaction volume reached $33 trillion in 2025, a substantial portion remains within the crypto ecosystem. This suggests that stablecoins are still in the early stages of real-world financial integration, leaving considerable room for expansion.

Institutional Interest and Regulatory Developments

Despite the current limited real-world adoption, banks and financial institutions recognize the potential of stablecoins to streamline cross-border payments and improve collateral management. Proposed regulations like the U.S. Genesis Act could further legitimize stablecoins, potentially driving their total supply to $2 trillion. Ripple’s active involvement in developing FX infrastructure, exemplified by LMAX’s integration of RLUSD, underscores its commitment to bridging the gap between crypto and traditional finance. This integration aims to attract institutional investors by enabling cross-collateralization and trading across both crypto and FX markets.

Ripple Prime and Tokenized Collateral

Ripple Prime, Ripple’s institutional brokerage arm, is focusing on tokenized collateral, particularly dollar-backed stablecoins, to transform financial market operations. Michael Higgins, global head of corporate development at Ripple Prime, anticipates these changes could begin as early as 2026. The FX market’s reliance on prefunding and delayed settlement creates inefficiencies that tokenized collateral could mitigate. Ripple Prime is witnessing growing demand for regulated stablecoins to reduce these frictions, potentially unlocking significant opportunities for RLUSD and XRP.

XRP’s Potential Price Surge

The global FX market’s $9.6 trillion daily turnover presents a lucrative opportunity for XRP and RLUSD. Capturing just 1% of this flow would translate to $96 billion per day. To estimate the potential impact on XRP’s price, an analysis using liquidity models suggests that high-utility assets typically maintain a market cap around 15 to 20 times their daily transaction volume. Applying a multiplier of 16.5 to $96 billion yields a required market cap of approximately $1.58 trillion. With an estimated circulating supply of 60 billion XRP tokens, this could lead to a projected price of around $26.50 per XRP.

Market Dynamics and Cautions

It is important to approach these projections with caution. Market conditions, regulatory developments, and the actual adoption rate of stablecoins in FX markets will influence the ultimate outcome. While the potential for XRP to reach double digits exists, it hinges on the successful integration of RLUSD into the FX market and the broader acceptance of stablecoins by institutional investors. The speculative nature of these estimates underscores the need for investors to conduct thorough research and consider various factors before making investment decisions.

The convergence of stablecoins and the FX market represents a significant opportunity for XRP and Ripple. Ripple’s strategic initiatives, coupled with the growing institutional interest in stablecoins, could pave the way for substantial gains. While uncertainties remain, the potential for XRP to capitalize on this trend is undeniable, positioning it as a noteworthy asset for institutional and high net worth investors.

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Source: Original article