Institutional investors view this latest cryptocurrency as akin to digital gold
In the dynamic world of cryptocurrencies, XRP is making significant strides towards becoming a core infrastructure piece for institutional liquidity and settlement. This transformation, fueled by regulatory clarity, ISO 20022 compliance, and integration with Fedwire through RippleNet, positions XRP as more than just a bridge currency for cross-border payments, but as a foundational element in the modernization of global financial systems.
The recent adoption of the ISO 20022 standard by Fedwire, a critical step for interoperability and seamless cross-border transactions between financial institutions, has aligned XRP with the global financial messaging standard. This alignment, coupled with XRP's compatibility with the ISO 20022 ecosystem, could enable faster, cheaper cross-border settlements at scale.
Regulatory uncertainty surrounding XRP has largely diminished following the conclusion of Ripple's multi-year litigation with the SEC and the SEC's withdrawal of its appeal in mid-2025. Ripple's pursuit of a U.S. federal banking license and its request for a Federal Reserve Master Account further boost institutional trust, as these moves indicate a commitment to operating under regulated oversight.
Institutional appetite for XRP is on the rise, with the launch of the ProShares Ultra XRP ETF and multiple pending spot XRP ETF applications. Prediction markets estimate an 85–89% chance of spot ETF approval by late 2025, which could unlock significant new investment inflows.
Ripple's RLUSD stablecoin, which is dollar-pegged and custodied by established banks like BNY Mellon, serves enterprise cross-border payment needs. Ripple's acquisition of Hidden Road to offer OTC swaps hints at the development of a full-stack institutional liquidity platform.
Bitcoin, on the other hand, continues to consolidate as a store of value and strategic asset for corporate treasuries. Its market capitalization is close to $2.36 trillion, and it is currently trading above $118,000 after a slight correction. Bitcoin surpassed $123,000 in July 2025, setting a new all-time high.
Meanwhile, Bitcoin is being sought-after by institutional funds, banks, and corporate treasuries, with Bitcoin ETFs registering net inflows of over $4.5 billion in July. Large financial actors can operate in Bitcoin's liquid market without significantly affecting the price.
In conclusion, XRP's regulatory clarity, ISO 20022 compliance, and integration with Fedwire through RippleNet firmly establish its role as an emerging institutional liquidation and settlement infrastructure. These developments position XRP not just as a bridge currency for cross-border payments but as a foundational element in the modernization of global financial systems, with significant growth potential expected through 2026 and beyond.
Technology has played a crucial role in XRP's integration with the global financial systems, enhancing its compatibility with the ISO 20022 ecosystem, which is expected to facilitate faster and cheaper cross-border settlements at scale. This growth potential, coupled with institutional trust built through regulatory compliance and the pursuit of a federal banking license, positions XRP as an attractive investment option in finance, particularly for those interested in blockchain technology and investing in emerging institutional liquidity and settlement infrastructures.
