Banks Adopt XRP for Payments as Ripple Seeks New York Banking Charter

XRP's latest price was $2.97, down 0.011% in the last 24 hours. The cryptocurrency XRP has seen significant developments recently, with several banks adopting it for payments. According to Ripple's chief technology officer, a number of banks have started to use XRP for payments, and one planned bank tied to Ripple will run entirely on the XRP Ledger. This move is part of Ripple's broader strategy to seek a New York banking charter, a Federal Reserve master account, and to conform with ISO 20022 messaging standards used by major banks. These steps are aimed at making the token useful for large-scale settlement work.

DBS and Franklin Templeton have signed a memorandum of understanding to work on tokenized trading and lending products. Franklin Templeton’s sgBENJI, a US dollar money market fund token, is launching on DBS Digital Exchange. Ripple’s RLUSD stablecoin is being used to support trading activity and is reported to be valued at nearly $730 million. DBS is also exploring the acceptance of sgBENJI as repo collateral, which would add liquidity for tokenized assets. Lim Wee Kian of DBS said the move is a step toward offering institutional-grade digital asset services.

Nigel Khakoo of Ripple highlighted that the system makes it easier to move between stablecoins and yield-generating tokens within a single setup. Franklin Templeton said it selected the XRP Ledger for cost and speed reasons, and for its role in scaling tokenized securities. BNY Mellon is named as the custodian for reserves backing RLUSD, a detail that underlines the institutional angle Ripple is pushing.

The momentum of XRP follows legal and regulatory shifts in the US after Ripple’s long fight with the SEC. More than 20 spot XRP ETFs are under consideration, a factor that could pull large institutional capital into the market. The Depository Trust & Clearing Corporation, which handles up to $4 quadrillion in settlements a year, has mentioned tokenization in its planning documents. Researchers point out how tokenized settlement rails might change back-office flows if adopted widely.

Banks are said to be moving slowly. Early integration tests and compliance checks are still under way. Industry sources say the combination of custody arrangements, stablecoins, and ledger-based settlement could unlock multi-trillion-dollar flows if real-world tokenization proves reliable. However, those sources also warn that large-scale adoption will take time and careful risk controls.

Crypto researcher SMQKE drew attention to a working paper published in July 2025 under Bank Negara Malaysia’s working paper series, titled Fundamentals of Modern Money and its Application to Central Bank Digital Currency (CBDC). The report includes remarks on the potential role of private tokens in payment systems and provides an assessment of the suitability of existing cryptocurrencies for settlement purposes. The working paper, identified as WP3/2025, is explicitly labelled as research in progress, carrying the usual disclaimer that its contents represent the authors’ views and not formal policy positions of Bank Negara Malaysia. Nonetheless, SMQKE emphasized the importance of key passages within the document that outline the potential role of private tokens such as XRP in future payment systems.

Significant regulatory clarity emerged for XRP following Ripple's resolution of its longstanding legal dispute with the U.S. Securities and Exchange Commission (SEC) in early 2025. This settlement effectively confirmed the non-security status of XRP within the U.S. framework, removing a major hurdle that had previously impeded broader institutional acceptance and product development surrounding the digital asset.

In a direct consequence of the regulatory clarity achieved, institutional interest in XRP has surged substantially throughout 2025. This heightened interest is clearly manifested by the submission of eleven distinct applications for spot exchange-traded funds (ETFs) focused on XRP. These applications have been filed by prominent traditional asset management firms seeking regulatory approval, aiming to provide investors with regulated exposure to XRP through conventional financial markets.

Technical analysis discussions within the XRP community point to the asset's price action consolidating within a narrowing range throughout the third quarter of 2025. Analysts observe this pattern, often referred to as a tightening micro-range, and interpret it as potential groundwork for a decisive directional move. The technical structure, including observations of a descending channel pattern, suggests an impending breakout may be possible, although timing remains uncertain.

Discussions surrounding the fundamental tokenomics of XRP have also intensified recently. Concerns are being raised regarding the absence of an active, predictable token burn mechanism to systematically reduce the enormous existing circulating supply, which remains near its original allocation of almost 60 billion tokens. The potential implications of this supply dynamic for the asset's long-term value proposition and scarcity features are subjects of active debate among market observers and holders.

This combination of a settled regulatory environment and growing institutional product initiatives underscores a new phase for XRP. The approval outcome for the multiple spot ETF applications stands as a pivotal near-term event potentially shaping its adoption trajectory. If sanctioned, these ETFs could further catalyze mainstream institutional participation and cement XRP's position within the broader digital asset landscape.