XRP Adoption Surges as Banks Gain Unrestricted Access

• As an analyst delves into the discussion, the OCC’s recent decision to improve banks’ accessibility to crypto assets is expected to greatly benefit XRP.
• XRP has been tipped to hit $33 as a renowned crypto analyst dismisses the “market cap argument.”

Crypto analyst Xaif has weighed in on the recent groundbreaking decision by the Office of the Comptroller of the Currency (OCC), which ensures that banks seamlessly access certain crypto assets, including XRP. According to him, this announcement represents a significant shift in the crypto industry and is “bigger than the strategic reserve.”

The Background of the Story

In a recent update, we discussed the interactive letter of the OCC, which permits national banks and federal savings associations to engage in certain stablecoin activities while participating in independent node verification networks. According to the report, the OCC has also rescinded its requirements for supervised institutions while backtracking on its participation in a previous joint statement that highlighted crypto-asset risks and liquidity risks.

Commenting on this, Acting Comptroller of the Currency Rodney E. Hood pointed out that this decision would ensure inclusivity and reduce the pressure on banks to engage in digital assets.

Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology. I will continue to work diligently to ensure regulations are effective and not excessive while maintaining a strong federal banking system.

This means that banks can now handle crypto assets and participate in blockchain networks like the XRP Ledger (XRPL) under a consistent regulatory framework. The XRPL was reportedly designed for low-cost and high-speed cross-border transactions. Its stablecoin RLUSD is reported to align with OCC’s policy, making XRP a favourable option for banks looking to adopt a blockchain-based payment solution.

Currently, major financial institutions are reported to be responding to this shift as the Bank of America prepares to launch a stablecoin on Ethereum. JPMorgan Chase is also reported to be exploring stablecoin integration, while UK-based fintech firm Revolut works towards issuing its stablecoin.

Amidst the backdrop of this, XRP has also been mentioned alongside other altcoins – Ethereum (ETH), Cardano (ADA), and Solana (SOL) to be in line for the next US crypto reserve. As highlighted in our previous article, MicroStrategy’s Michael Saylor believes that this initiative could be bullish for Bitcoin and other crypto assets, including XRP.

XRP Price Analysis

At the time of writing, XRP was trading at $2.1 after declining by 2% in the last 24 hours and 16.9% in the last seven days. According to an analyst called Zach Rector, XRP can reach $33 this cycle.

Dismissing the “market cap argument” against this level of price point, the analyst explained that XRP or any digital asset is not as straightforward as people think. According to him, the asset shows a market cap multiplier effect where a small amount of capital inflow causes a significant increase in valuation.

Defending his thesis, Rector highlighted that the market cap once increased by $17 billion when the network inflow increased to $80 million. To him, this was a 212x multiplier. Meanwhile, the filing of an appeal brief by the US Securities and Exchange Commission (SEC) on January 15, 2025, caused the price to fall from $3.20 to below $3. At that time, the market cap declined by $15 billion. However, only $55 million in outflows were recorded at that time.

This explanation implies that the asset is very responsive to capital inflow. Per his observation, the asset could hit $33 once an $8 billion inflow is recorded. Meanwhile, JPMorgan has estimated that a potential approval of XRP ETF could see the market attracting this amount of capital in the first 12 months, as previously mentioned in our report.