XRP's Strategic Position in the Internet of Value and Regulatory Integration: Undervaluation Amid Structural Financial System Adoption

In 2025, XRP stands at a pivotal crossroads in the evolution of the Internet of Value-a decentralized financial infrastructure that enables seamless, real-time value transfer. Despite robust institutional adoption, regulatory progress, and foundational utility in global financial systems, XRP remains undervalued relative to its systemic role. This analysis explores how XRP's integration into traditional finance, coupled with its technological advantages, positions it as a critical infrastructure asset, while highlighting the disconnect between its fundamentals and current market valuation.

Institutional Adoption: From Payments to Yield and Custody

Ripple's strategic partnerships in 2025 have expanded XRP's utility beyond cross-border payments into institutional-grade financial products. A key development is the collaboration with TJM Investments, a FINRA-registered broker-dealer, which now leverages XRP for enhanced clearing stability and digital asset access for institutional clients according to a recent report. Similarly, partnerships with Doppler Finance and SBI Ripple Asia have introduced XRP-based yield products, transforming the token from a liquidity bridge into a regulated income-generating asset as detailed in the analysis. These initiatives, supported by Ripple's acquisition of Hidden Road and the launch of Ripple Prime, underscore XRP's integration into institutional custody and treasury management systems according to financial reports.

The token's role in RLUSD, Ripple's dollar-backed stablecoin, further cements its infrastructure status. RLUSD's expansion into Ethereum Layer-2 ecosystems and adoption by custody platforms like wXRP on Solana highlight XRP's interoperability and growing institutional trust as reported by market analysts. Yet, despite these advancements, XRP's price remains anchored between $1.87 and $1.94 as of December 2025, a level last seen in April 2025 according to market data. This stagnation contrasts sharply with the token's expanding real-world utility.

Regulatory Integration: A Federally Regulated Trust and SEC Clarity

Regulatory progress in 2025 has been a cornerstone of XRP's institutional adoption. Ripple received conditional approval to operate a federally regulated U.S. national trust bank, focusing on crypto custody and RLUSD reserve management according to Ripple's official announcement. This milestone aligns with the resolution of the U.S. SEC lawsuit, which granted XRP a clear legal status as a non-security asset as reported by financial analysts. The subsequent launch of five spot XRP ETFs on the DTCC marked a watershed moment, legitimizing XRP as a tradable asset within traditional finance according to market analysis.

However, the market has yet to fully price in these developments. While ETF inflows have added $1.0–1.12 billion in net inflows according to market data, derivatives markets continue to exert downward pressure. Analysts argue that XRP's valuation remains misaligned with its role as a foundational liquidity layer, akin to TCP/IP in the internet era as detailed in the analysis. This disconnect is exacerbated by macroeconomic headwinds, including rising interest rates and broader crypto market downturns as reported by financial experts.

XRP in the Internet of Value: Efficiency and Interoperability

XRP's strategic position in the Internet of Value is defined by its technical superiority and systemic utility. The XRP Ledger processes transactions in 3–5 seconds at a cost of ~$0.0002, outperforming traditional systems like SWIFT, which can take days and cost significantly more according to technical benchmarks. This efficiency has driven adoption by over 100 financial institutions across 40+ countries through Ripple's On-Demand Liquidity (ODL) service as reported by market analysis.

Moreover, XRP's role as a bridge asset between traditional banking, CBDCs, and DeFi is gaining traction. Its integration into RLUSD's reserve management and cross-chain interoperability via XRP Tundra-a dual-chain DeFi layer offering yield, governance, and cross-chain execution-positions it as a versatile settlement protocol according to market analysis. These innovations suggest XRP is evolving from a transactional token to a governance-enabled asset, a shift that could unlock significant value in 2026 according to market forecasts.

Undervaluation Amid Structural Adoption: A Disconnect in Valuation Models

The undervaluation of XRP stems from a mismatch between its demand-driven utility and speculative market models. Institutional adoption is driven by real-world transaction demand, yet investors continue to apply speculative frameworks, underestimating XRP's role as infrastructure as detailed in market analysis. For instance, while Bitcoin ETFs have seen rapid price appreciation, XRP's structural integration into cross-border payments and stablecoin ecosystems has not translated into proportional gains according to market reports.

Technical indicators further highlight this disconnect. XRP is trading below both the 100-day and 200-day moving averages, forming a descending channel pattern according to technical analysis. The $1.93 level, once support, has become resistance, and a breakout above this threshold is critical for reversing the downtrend according to technical indicators. Analysts project a bullish scenario of $20–$50 by 2025 if institutional adoption accelerates and ODL gains traction according to market projections, but conservative forecasts suggest $5–$10 as a more realistic target according to price analysis.

Conclusion: A Foundation for Long-Term Value

XRP's strategic position in the Internet of Value is underpinned by its efficiency, regulatory clarity, and institutional adoption. Yet, its current valuation fails to reflect its systemic role as a liquidity transmission protocol and bridge asset. As tokenization of real-world assets (RWA) and cross-chain interoperability gain momentum, XRP's position as a neutral, high-speed settlement layer will become increasingly valuable according to market analysis. For investors, the key lies in recognizing XRP not as a speculative asset but as foundational infrastructure-a shift that could redefine its valuation trajectory in the coming years.