XRP News Today: Ripple's $1.25B Acquisition Boosts XRP Adoption by Banks

XRP, the cryptocurrency developed by Ripple, has the potential to reach $100 once banks start using it extensively. However, there are several reasons why this has not yet happened. One of the primary factors is the regulatory environment surrounding cryptocurrencies. Many banks are cautious about adopting new technologies due to the lack of clear regulations and the potential risks associated with digital assets. This hesitation has slowed down the widespread adoption of XRP by financial institutions.

Another significant barrier is the technological integration required for banks to use XRP. Banks need to invest in infrastructure and training to seamlessly integrate XRP into their existing systems. This process can be time-consuming and costly, which has deterred some institutions from making the switch. Additionally, the volatility of cryptocurrencies can be a concern for banks, as it adds an element of risk to their operations.

Despite these challenges, there are signs that the adoption of XRP by banks is gaining momentum. Ripple has been actively working with financial institutions to promote the use of XRP for cross-border payments. The company's acquisition of Hidden Road, a multi-asset prime brokerage company, for $1.25 billion is a strategic move to enhance its capabilities in the financial services sector. This acquisition is expected to strengthen Ripple's position in the market and accelerate the adoption of XRP by banks.

The increasing number of crypto-friendly banks globally is also a positive sign for the future of XRP. These banks offer integrated services for fiat and cryptocurrency transactions, acting as a bridge between traditional finance and digital assets. For example, Revolut, a UK-based crypto bank, facilitates fiat currency custody, transfers, and exchanges in addition to crypto trading on over 30 supported cryptocurrencies. Similarly, Mercury, a US-based crypto-friendly bank, offers crypto trading and custody services, crypto payments for institutions, digital asset lending, and API connectivity.

The growing acceptance of cryptocurrencies by banks is not limited to a few regions. In the United States, JPMorgan Chase, Customers Bank, and Ally Bank are among the institutions that offer services to digital asset firms and cryptocurrency exchanges. In Europe, banks like AMINA Bank in Switzerland and SolarisBank in Germany are integrating cryptocurrencies into their offerings. In the Asia-Pacific region, DBS Bank in Singapore and SBI Sumishin Net Bank in Japan are leading the way in crypto adoption.

The future of XRP looks promising as more banks recognize the benefits of using cryptocurrencies for cross-border payments. The potential for XRP to reach $100 is real, but it will require overcoming regulatory hurdles, technological challenges, and the volatility of the cryptocurrency market. As banks continue to explore the use of XRP, the likelihood of it reaching this milestone increases. However, it is important to note that the actual value of XRP will depend on various factors, including market demand, regulatory developments, and the overall adoption rate by financial institutions.

Ripple has spent years building the necessary infrastructure to support this vision. RippleNet and its On-Demand Liquidity (ODL) product already process billions of dollars annually, with XRP used to eliminate pre-funded accounts in cross-border transactions. Ripple has also forged strategic partnerships with financial giants like Santander, SBI Holdings, Tranglo, and Novatti. In Southeast Asia and Latin America, Ripple’s solutions are already being used to facilitate real-time remittances.

Moreover, in 2023, Ripple acquired Metaco, a Switzerland-based digital asset custody provider, for $250 million. This acquisition gave Ripple a strong foothold in institutional-grade crypto infrastructure, a move widely seen as part of a broader strategy to attract banks and asset managers to the XRP ecosystem.

In parallel, Ripple has been engaging with central banks to explore how XRP could be used within central bank digital currency (CBDC) frameworks. The company has ongoing pilot programs with at least four countries and is building a reputation as a trusted partner in tokenized finance.

On the legal front, Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed on May 3 that the SEC had formally abandoned its appeal in the case over XRP’s classification. Speaking via Ripple’s “Crypto in One Minute” series, Alderoty called the decision a “positive shift” in U.S. crypto policy. He argued that the outcome provides long-awaited clarity for the market, suggesting that Ripple is free to pursue deeper institutional integration, which could help bolster XRP.

According to the analyst, the current price levels reflect a market still waiting for real institutional utility. But once banks and global financial institutions start leveraging XRP for high-volume cross-border settlements, the price could soar beyond three-digit figures.