Ripple Labs and the XRP token have been major beneficiaries of the Trump administration’s embrace of digital assets in 2025. Since November, XRP has risen roughly 600%. Will XRP continue to rise or stall out? There are compelling arguments for both outcomes.
On August 7th, the fraught and lengthy legal battle between the SEC and Ripple Labs officially came to an end. Ripple agreed to pay a $125 million fine, which is a fraction of what the SEC was initially demanding. But more importantly, Ripple obtained regulatory clarity that the company can reference when moving forward.
The First XRP ETF: XRPR’s Quiet Debut
Earlier in the year, Ripple CEO Brad Garlinghouse told Bloomberg he expected XRP to be included in the U.S. government’s crypto stockpile, while he’s also said he expects an XRP spot ETF launch before the end of 2025.
Indeed, REX-Share and Osprey Fund have recently launched a US-based ETF called XRPR. However, the manner in which this ETF is structured and was ultimately given the green light is different from your typical spot ETF. XRPR beat many of its rivals to market by utilizing the Investment Company Act of 1940, as opposed to the Securities Act of 1933, which entails a lengthier vetting process.
On its first day, REX-Osprey’s ETF recorded $37.7 million in trading volume, which was higher than expectations. However, amidst this heavy trading volume, the price of XRP barely budged. It’s possible the lack of a price breakout can be attributed to XRP currently being seen by investors as overbought.
Whale Breach and the ETF Waiting Game
Reported last week, XRP whales recently unloaded about 160 million XRP over a two-week span, which dampened the price.
Some have argued that REX-Osprey’s ETF has not caused upward price movement because investors are waiting for several other XRP spot ETFs still awaiting approval. While XRPR may be the first XRP ETF on the market, its fees are high when compared to Bitcoin spot ETFs. Moreover, as a legal requirement, the fund cannot solely hold XRP, resulting in part of the fund being managed by a Cayman Island subsidiary.
Whether the eventual launch of ETFs by the likes of Franklin Templeton will elevate the price of XRP remains to be seen. Earlier this month the SEC delayed the decision on a number of ETFs to mid-November, citing market manipulation concerns.
Stablecoins: Everybody’s Got One
Ripple Labs’ footprint is largely outside of the US, where 90% of the company’s business originates. However, after throwing off the burden of the regulatory hostility, Ripple has been on a mission to expand its influence, launching a stablecoin (RLUSD) in late 2024 and making a much-publicized but unsuccessful offer to buy Circle for $5 billion in April.
Meanwhile, Ripple has applied to the Office of the Controller of the Currency (OCC) for a national trust banking charter. If successful, Ripple National Trust Bank would control issuance and custody of RLUSD. Additionally, a federal charter would further engrain RLUSD within the federal laws introduced by the GENIUS Act.
What this means for XRP remains to be seen. If one is to think of XRP as a bridge asset, or facilitator of cross-border payments, it offers far more liquidity than RLUSD. Presently, XRP’s market cap stands at roughly $177 billion, whereas RLUSD’s market cap is $730 million.
However, far fewer banks actually use XRP than Ripple’s many partnerships suggest. While many prominent banks, such as Santander, have partnerships with Ripple Labs, what they are actually using within the Ripple ecosystem is RippleNet, Ripple’s enterprise blockchain network, which does not necessitate the use of XRP.
XRP’s Utility Question: Bridge Asset or Sideshow?
While banks might want the transaction speed XRP offers, they are risk-averse institutions. XRP, compared to the U.S. dollar, is a volatile asset. Smaller institutions with liquidity problems might use XRP as a bridge asset, but are unlikely to hold onto it.
The reality of XRP’s limited usefulness in the real world has been readily available to see for anyone willing to read between the lines. Now that Ripple has begun pushing its own stablecoin, it may become more apparent. However, there are plenty among the Ripple army who say that XRP and RLUSD don’t compete with one another, but enhance each other.
In early August, just as its five-year battle with the SEC was coming to an end, Ripple announced it was acquiring Toronto-based Rail for $200 million. Rail, a stablecoin payment services operation based in Toronto, allows companies to access stablecoin payment rails without needing to hold cryptocurrency.
Given the industry shift towards stablecoins and Ripple’s flush balance sheet, the acquisition of Rail is unsurprising. In the words of Monica Long, President of Ripple:
“Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovations.”
How XRP will fit into Ripple’s growing push towards stablecoins is anybody’s guess, as is its price movement. The approval of new spot ETFs in November might inject enough money and enthusiasm into XRP to drive the price higher. Whether the price can stay there might depend on some magical thinking.
Author: Tim Tolka, Senior Reporter
#Crypto #Blockchain #DigitalAssets #DeFi
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
How Strong Will XRP Be in 2025? | Disruption Banking
Is There a 2030 Roadmap for XRP? | Disruption Banking
XRP Included as Grayscale ETF Goes Live on NYSE | Disruption Banking
