Key takeaways:
XRP eradicates pre-funding and accelerates cross-border remittances, making it beneficial in emerging markets.
Loyalty and travel programs are incorporating XRP into everyday transactions, transforming it from an investment asset into a functional payment method.
Institutions like SBI and Santander enhance credibility by maintaining XRP reserves and investigating settlement applications.
With the SEC lawsuit concluded and global clarity improving, XRP now possesses legal certainty and a broad network advantage for increased adoption.
XRP (XRP), the native digital currency of the XRP Ledger (XRPL), is frequently discussed regarding speculative trading. However, its importance extends beyond that when considering XRP’s practical applications, institutional backing, and regulatory clarity.
Here are five elements that elucidate why XRP is significant beyond its market value.
1. Cross-border payments and remittance efficiency
International transactions are among XRP’s strongest value propositions. It removes pre-funding, shortens settlement times, and reduces costs by serving as a bridge currency.
Examples:
In stark contrast to SWIFT, which can take days and involve high fees, XRP’s near-instant settlement makes it a viable option in emerging markets where remittances are vital.
2. Loyalty and travel program integration
XRP is increasingly utilized beyond financial sectors, particularly in loyalty, travel, and consumer services. This establishes everyday utility for countless users.
Examples:
Webus/Wetour has created a $300-million XRP treasury to back blockchain-based travel vouchers, loyalty points, and settlement systems. More than 60 million loyalty members can utilize XRP for international services like airport transfers, upscale rides, and travel adventures.
SBI VC Trade (Japan) allows customers to earn XRP rewards through loyalty initiatives, broadening its application beyond trading.
When loyalty initiatives embrace XRP, it transitions from a speculative asset to something users interact with daily, whether redeeming points or paying for travel.
Did you know? The now-discontinued XRP TipBot (Netherlands) previously enabled users to tip XRP on social platforms, highlighting its micro-reward capabilities within loyalty-based ecosystems.
3. Institutional adoption and treasury use
Institutions recognizing XRP as a legitimate operational and treasury asset add credibility and foster demand, indicating increasing trust in its long-term viability.
By leveraging XRP for liquidity management, settlements, and international transfers, these organizations validate its usefulness beyond mere speculation, reinforcing its standing as an institutional-grade digital asset.
Examples:
SBI Holdings not only invests in Ripple but also incorporates XRP in its subsidiaries (SBI Remit, SBI VC Trade) while holding significant XRP reserves.
Santander (Spain) has tested RippleNet and researched XRP-based settlement for international payments via its One Pay FX platform.
Bank of America is reportedly collaborating with Ripple, exploring XRP settlement for improved cross-border efficiency.
Travel platform WeBus is reserving a large XRP pool managed by an institutional fund manager to support loyalty and settlement activities.
When companies integrate XRP into their accounting or payment systems, it conveys confidence and generates genuine demand beyond trading activities.
4. Technological features and ledger upgrades
XRPL delivers speed, scalability, and innovative capabilities that continually attract use cases ranging from cross-border payments and stablecoin creation to tokenized assets and decentralized finance (DeFi) applications.
Its minimal fees and environmentally-friendly consensus mechanism make it one of the most practical blockchains for real-world adoption.
Examples:
Transaction speed: Settles in three to five seconds, versus Bitcoin’s 10 minutes or SWIFT’s two to five days. This supports remittance and microtransaction applications.
Low cost: Fees are typically a fraction of a cent, optimal for loyalty programs, micropayments, and small rewards.
XLS-20 amendment: Enabled native non-fungible tokens (NFTs) on XRPL, permitting loyalty points, tickets, and collectibles to be tokenized directly on-chain.
XLS-70 / XLS-80 proposals: Enhance digital credentials and controlled access, essential for regulated financial and enterprise applications.
Sologenic: (Developed on XRPL) tokenizes stocks and ETFs, illustrating how XRPL technology supports financial assets beyond payments.
XRPL’s emphasis on practical scalability is why enterprises perceive it as infrastructure rather than merely a speculative platform.
Did you know? The XRP Ledger operates without mining, unlike Bitcoin or Ethereum. It employs a unique consensus mechanism validated by a global network of over 150 independent validators, encompassing universities, financial institutions, and community-operated nodes, confirming transactions in just three to five seconds.
5. Regulatory clarity and network effects
XRP’s long-term value hinges not solely on technology and adoption, but also on regulatory perspectives and the integration of extensive networks. By 2025, significant shifts in the regulatory and market landscape will provide XRP with greater clarity and momentum.
Clear legal status
In July 2023, US District Judge Analisa Torres ruled that XRP is not a security when sold on exchanges, although direct institutional transactions may fall under securities regulations.
In August 2025, Ripple and the US Securities and Exchange Commission formally concluded their five-year legal dispute. The SEC abandoned its appeals, and Ripple consented to a $125-million civil penalty. This resolution provides the long-awaited finality and regulatory certainty in the US market.
Regional regulatory alignment
Japan: XRP remains one of the few cryptocurrencies with a defined legal framework, thanks to proactive regulations and SBI Holdings’ advocacy.
UK and EU: Ripple has proactively engaged in aligning XRP usage with the EU’s Markets in Crypto-Assets (MiCA) framework, ensuring compliance within European markets.
Network growth in numbers
As of 2025, there are over 6.6 million active XRP wallets worldwide. Blockchain explorers estimate that over 6 million individual XRPL accounts have been created.
SBI Group’s cryptocurrency exchanges (SBI VC Trade and BITPoint Japan) experienced rapid growth, jumping from about 807,000 accounts in March 2024 to around 1.65 million by March 2025.
SBI Holdings itself possesses roughly 1.6 trillion Japanese yen ($10 billion) worth of XRP and Ripple-related assets, exceeding its own market capitalization of 1.2 trillion yen.
As banks, exchanges, and consumer platforms adopt XRP, network effects intensify: increased liquidity, more corridors, and additional opportunities to utilize XRP in daily transactions.
Why does this matter?
The resolution of the Ripple vs. SEC case in 2025 removes a significant barrier for XRP. Coupled with regulatory clarity in Asia and Europe and observable growth in wallets, accounts, and corporate reserves, XRP now enjoys both legal certainty and a broad network advantage to promote adoption far beyond speculation.
Challenges XRP still faces
XRP enters 2025 with legal clarity and growing integrations, but its usage remains behind stablecoins like USDC (USDC), which transact trillions annually.
In addition, stablecoins and central bank digital currencies (CBDCs) are increasing competition with strong regulatory support and global payment infrastructures. In this context, XRP’s future hinges on its ability to extend adoption beyond infrastructure into tangible, widespread usage.
Adoption vs. actual usage: Numerous integrations exist; however, user engagement is still below its potential. In comparison, stablecoins like USDC (from Circle) demonstrate vast on-chain volume. For instance, in 2025, USDC’s annual transaction volume reached trillions of dollars ($5.9 trillion within one year) in on-chain transfers. Such scale indicates broader usage of stablecoins (for payments, transfers, etc.) than many non-fiat cryptocurrencies.
Competition: In 2025, stablecoins and CBDCs present fierce competition to XRP: Fireblocks’ Payment Network, Circle’s Arc network, and partnerships between Circle and FIS are propelling USDC adoption in over 100 countries, while CBDCs promise state-supported digital currency with regulatory trust and seamless banking integration.
Regulation: Regulatory conditions remain a double-edged sword for XRP. Although the conclusion of the US case in 2025 brought legal clarity, certain regions still restrict or do not recognize XRP as legal tender. China bans most cryptocurrency transactions, necessitating overseas adaptations, while global stablecoin regulations are tightening, elevating compliance standards but also enhancing trust in competitors like USDC. This mixture of progress and obstacles means XRP’s adoption potential varies widely across markets.
Given these challenges, XRP’s future relies on whether adoption can evolve from integration to everyday application and how it navigates competition from stablecoins and CBDCs.
With legal clarity now established and global partnerships expanding, XRP finds itself at a pivotal juncture: ready to bridge traditional finance and digital assets but faced with the task of demonstrating its ability to flourish in a swiftly changing payments landscape.
This article does not offer investment advice or recommendations. All investments and trading activities involve risk, and readers should conduct their own research prior to making decisions.
