Trump's Social Media Spark: XRP's US Reserve Hopes Fade

Generated by AI AgentCoin World
Thursday, Feb 20, 2025 3:52 pm ET1min read
XRP--

XRP's crypto reserve dreams have hit a snag, with traders on Polymarket expressing skepticism over Donald Trump's social media claims regarding the token's potential role in the US financial landscape. Despite Ripple, the creator of the XRP token, being considered for a national reserve asset, experts believe it is too early to tell whether the token will indeed be included in the US financial reserves.

President Trump recently shared an article on Truth Social discussing the expansion of Ripple in the US, suggesting that the token could play an integral role in the country's financial landscape. Given XRP's low transaction fees and responsive transaction times, it is seen as a suitable candidate for a hybrid approach in the banking system. However, the chances of XRP reaching the US crypto reserve are currently estimated to be around 15% by experts.

In January, an article by Coindesk highlighted that Brad Garlinghouse, Ripple's CEO, noticed a significant spike in hiring efforts and deals, suggesting positive movements following Trump's crypto-friendly stance. However, there is no clear indication that XRP would be included in the US financial reserves.

Polymarket data suggests that traders are generally skeptical about XRP's inclusion in the US financial reserves. According to market data released by the platform, the probability of it happening is just 15%. Several factors contribute to this low probability, including the ongoing SEC vs. Ripple lawsuit, the US government's existing financial reserve prioritizing US treasuries and gold over digital assets, and the highly competitive market with better-performing assets and higher market caps like BTC and ETH.

While the possibility of XRP getting included in the US financial reserve in 2025 is low, it is not zero. Therefore, the best course of action is to wait and see how the situation unfolds in the future.

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