XRP News Today: XRP's CBDC Exclusion Fuels Institutional Push for ETF-Driven Growth

Central banks are increasingly prioritizing digital currencies, but XRP-a token long associated with cross-border payments-appears unlikely to factor into their central bank digital currency (CBDC) strategies. Analysts say this exclusion stems from regulatory scrutiny and the token's limited utility in the controlled environments required for CBDCs. However, a twist is emerging: institutional adoption and speculative demand are creating new avenues for XRP's growth, potentially reshaping its role in the crypto market.

Ripple, XRP's issuer, has pivoted toward institutional infrastructure with the launch of Ripple Prime, a U.S. institutional over-the-counter (OTC) brokerage service, according to a Beincrypto report. The platform, rebranded from the recently acquired Hidden Road, offers cross-margining and financing for major digital assets, including XRP and Ripple's U.S. dollar-pegged stablecoin, RLUSD. This move solidifies Ripple's presence in institutional finance, enabling large-scale, off-exchange transactions with reduced market impact. RLUSD's market capitalization recently surpassed $1 billion, signaling growing institutional trust in stable, compliant settlement solutions.

Meanwhile, XRP's path to broader adoption is being bolstered by regulatory developments. Bitwise Asset Management's updated S-1 filing for an XRP exchange-traded fund (ETF) has raised expectations for a potential approval within 20 days, according to a Coinpedia report. The filing's "shorter language" suggests streamlined regulatory review, while rival firms like VanEck and Fidelity have also revised their XRP ETF applications. Canary Funds, another contender, removed a "delaying amendment" from its filing, setting a possible launch date of November 13 if Nasdaq approves its 8-A filing. Analysts note that an approved XRP ETF could mark a historic milestone, potentially pushing the token toward its all-time high of $3.

Yet the narrative extends beyond ETFs. Evernorth, a Ripple-backed treasury firm, is set to merge with Armada Acquisition Corp II in a $1 billion SPAC deal, creating a vehicle to build a large XRP treasury, according to a TradingView report. While initial contributions to the project were made in XRP rather than cash, the impending initial public offering (IPO) could inject billions into open markets if proceeds are reinvested. Vincent Van Code, a prominent XRP analyst, warned of a potential "supply shock" if liquidity is strained by large-scale purchases, a scenario that could drive prices higher.

The token's price action reflects this optimism. XRP recently traded near $2.51, a modest gain as investors anticipate ETF approvals and institutional demand. However, technical indicators show resistance near $2.75, with a breakout potentially testing the $3 level. Conversely, persistent selling pressure could see a 19% correction toward $2 support levels.

Despite these developments, XRP's exclusion from CBDC projects remains a sticking point. Central banks globally are designing CBDCs with a focus on sovereignty, regulatory compliance, and controlled ecosystems-attributes not aligned with XRP's decentralized, permissionless model. This divergence underscores a broader challenge for XRP: while institutional and retail adoption grows, its role in the evolving digital currency landscape remains distinct from that of state-backed CBDCs.