XRP's Institutional Utility and Valuation Potential: Why a $10 Price Target is Justified by Settlement-Scale Adoption and Institutional Demand

Institutional adoption is the linchpin of XRP's long-term value proposition. As the crypto market matures, the shift from speculative retail-driven narratives to institutional-grade utility has become inevitable. XRP, once dismissed as a speculative token, is now being positioned as a foundational asset in global financial infrastructure. With settlement volumes, stablecoin integration, and strategic partnerships accelerating in 2025, the case for a $10 price target-and beyond-rests on three pillars: institutional adoption, real-world transactional demand, and supply-side dynamics.

Institutional Adoption Expands XRP's Utility

Ripple's institutional footprint has expanded dramatically in 2025, with partnerships that embed XRP into regulated financial systems. According to reports, the company's minority stake in TJM Investments, a U.S.-regulated broker-dealer, underscores its commitment to creating a compliant trading environment for hedge funds and asset managers via Ripple Prime. Meanwhile, SBI Ripple Asia's collaboration with Doppler Finance introduces XRP-based yield products and custody solutions, transforming the token into a balance-sheet-compatible asset. These moves are not speculative-they are infrastructure-building. As Ripple's CTO David Schwartz notes, institutional adoption is the bedrock for retail growth, enabling the XRP Ledger (XRPL) to scale from niche use cases to mainstream applications.

The regulatory credibility of these partnerships cannot be overstated. By aligning with entities like BNY Mellon and piloting Visa-linked solutions, Ripple is normalizing XRP's role in traditional finance. This institutional validation is critical for price discovery, as it reduces the stigma of crypto as a "wild west" asset and positions XRP as a utility token with real-world economic value.

Settlement Volumes and RLUSD Drive Real-World Demand

XRP's utility as a settlement asset is being cemented by its role in cross-border payments and stablecoin ecosystems. Ripple's On-Demand Liquidity (ODL) processed over $15 billion in 2024, with 80% of major remittance corridors now covered. This growth is not just volume-it's a shift in how institutions handle liquidity. For example, 40% of RippleNet's 300+ partners now use XRP for ODL instead of fiat, reducing settlement times and costs.

The launch of Ripple USD (RLUSD), a regulated stablecoin, further amplifies XRP's demand. With $1.3 billion in total supply and $293 million on the XRP Ledger, RLUSD is being integrated into institutional payment flows and layer-2 networks like Optimism and Base. This dual-token strategy-XRP as a bridge asset and RLUSD as a stable medium-creates a flywheel effect: increased ODL usage drives XRP demand, while RLUSD adoption reinforces the ledger's utility.

ETF Inflows and Supply Dynamics

The U.S. spot XRP ETFs approved in November 2025 have been a game-changer. In just four weeks, these ETFs attracted $1 billion in inflows, locking up 90 million XRP tokens and reducing the liquid supply by 45%. While macroeconomic headwinds initially capped price gains, the ETFs have created a structural shift. By removing XRP from circulating supply, they've tightened liquidity, a bullish catalyst for price appreciation.

Exchange balances have dropped significantly, with over 216 million XRP withdrawn into long-term storage-a classic precursor to price action. This trend, combined with a bullish Cumulative Volume Delta (CVD), signals growing institutional buying pressure. Analysts argue that sustained ETF inflows could see XRP reclaim its $3.66 peak by Q4 2026, but the real potential lies in the compounding effects of reduced supply and increased demand.

Valuation Models and the Path to $10

Valuation models linking XRP's settlement volumes and RLUSD usage to price projections paint a compelling picture. If U.S. spot XRP ETFs attract $10 billion in inflows by 2026, AI-driven models predict a price range of $6–$14. Technical analysis also supports this: XRP is currently in a descending channel with key resistance at $2.57. A breakout above this level could trigger a retest of $3.50 by late 2026.

The $10 target, however, requires more than technicals-it demands a leap in real-world adoption. Sustained daily transactions above 2 million would signal XRP's transition from a speculative asset to a payment rail. With tokenized real-world assets (RWA) on the XRP Ledger reaching a $347 million market cap in Q3 2025, the infrastructure is already in place. If institutional demand for ODL and RLUSD continues to grow at 30%+ year-over-year, XRP's valuation could decouple from traditional crypto cycles and align with its utility in global finance.

Conclusion

XRP's journey to $10 is not a speculative bet-it's a calculated outcome of institutional adoption, settlement-scale volumes, and supply-side dynamics. The token is no longer just a crypto asset; it's a bridge between traditional finance and decentralized infrastructure. As Ripple's CTO David Schwartz emphasizes, the XRP Ledger is evolving into a platform for tokenized assets, stablecoins, and cross-border payments. For investors, the key takeaway is clear: XRP's valuation is no longer tied to market sentiment alone. It's anchored in real-world utility, and the $10 price target is within reach if institutional demand continues to outpace supply.