Ripple’s pursuit of a US national bank license, coupled with new regulatory clarity from Washington and a significant wave of ETF/ETP inflows, is fundamentally altering XRP’s perception. It is evolving from a speculative altcoin into a bank-grade, high-quality infrastructure positioned at the core of a new cross-border payment system.
Regulatory Approval for Crypto Transactions
In a recent commentary letter, the U.S. Office of the Comptroller of the Currency (OCC) confirmed that national banks are now permitted to engage in “risk-free principal” crypto asset transactions. This model allows banks to function as intermediaries, facilitating transactions between buyers and sellers on behalf of their clients. Banks can earn spreads or commissions without holding the crypto assets on their own balance sheets, treating these transactions more akin to brokerage or foreign exchange services rather than direct trading. The OCC mandates that institutions must adhere to stringent capital, liquidity, risk management, and compliance standards when offering such products.
Ripple's National Bank License Application
This regulatory development arrives at a pivotal moment for Ripple. The company has submitted an application for a US national bank license and a Federal Reserve master account. If this application is approved, the entity, potentially named “Ripple National Trust Bank,” would gain the ability to accept deposits as a fully regulated US bank. It would also be able to offer institutional-level custody services and process payments directly through the Federal Reserve’s established channels. Analysts suggest that such a license would align both XRP and Ripple's RLUSD stablecoin within the same regulatory framework as traditional fiat currency, potentially offering risk-averse institutions a clearer pathway for integrating Ripple's technology into everyday financial operations.
Shifting Market Perception and Asset Allocation
On the asset allocation front, XRP is demonstrably climbing in quality rankings. It currently holds a notable weight of approximately 5.17% in the Bitwise 10 Crypto Index ETF (BITW), positioning it among the fund’s top three holdings alongside Bitcoin and Ethereum. Bitwise itself describes XRP as “one of the world's longest-traded crypto assets and has the potential to reshape how money moves globally,” a designation that signifies a "blue chip" status rarely achieved by altcoins within a US-listed portfolio.
Surge in ETF and ETP Inflows
Streaming data further supports this narrative of increasing institutional adoption. Digital asset ETPs experienced substantial net inflows totaling $716 million in a recent week, with XRP products capturing $245 million of this amount. This figure represents nearly six times the weekly inflows for Ethereum and significantly surpasses Solana, despite the latter possessing larger DeFi and NFT ecosystems. XRP ETFs from issuers such as Canary, Grayscale, Bitwise, and Franklin Templeton have consistently recorded net inflows for 16 consecutive days. This sustained demand has pushed cumulative on-chain ETF demand to over $1 million in less than a month, marking it as one of the most successful altcoin ETF launches on record.
Evolving from Speculative Token to Regulated Infrastructure
At the market structure level, XRP is trading within the $2 support zone. Analysts are observing a “recent squeeze” pattern, where a narrowing of price action coupled with increased volume often precedes a significant price movement in either direction. Technical analysis suggests an extended breakout structure with potential long-term upside targets in the $9-13 region, although caution is advised due to the inherent volatility and possibility of deeper pullbacks.
The confluence of the OCC's approval for bank-led cryptocurrency transactions, Ripple's application for a US bank license, Bitwise's recognition of XRP as a blue-chip asset, and the substantial rise in ETF/ETP inflows is solidifying a new narrative. XRP is increasingly being viewed not merely as a high-beta transactional instrument, but as a foundational component of a regulated payment, liquidity, and clearing system. Banks, ETF issuers, and institutional investors are actively integrating this technology into their infrastructure. While the full realization of this narrative in terms of price remains to be seen, XRP is structurally progressing towards becoming an integral part of mainstream finance.