Key takeaways:
XRP facilitates cross-border remittances by eliminating pre-funding and enhancing speed, proving valuable in emerging markets.
By integrating into loyalty and travel programs, XRP shifts from an investment asset to a viable payment method in everyday transactions.
Institutions like SBI and Santander enhance credibility by maintaining XRP reserves and exploring various settlement applications.
With the SEC case resolved and increasing global clarity, XRP benefits from legal certainty and a broader network for potential adoption.
XRP (XRP), the native digital asset of the XRP Ledger (XRPL), is often viewed through the lens of market speculation. However, its true importance lies in its real-world applications, institutional backing, and regulatory clarity.
Here are five reasons why XRP holds significance beyond its market valuation.
1. Efficiency in cross-border payments and remittances
XRP stands out as a key player in international payments. It eliminates pre-funding, shortens settlement times, and reduces costs by functioning as a bridge currency.
Examples:
In contrast to SWIFT, which may take several days and come with hefty fees, XRP’s near-instant settlement makes it particularly appealing in emerging markets reliant on remittances.
2. Integration into loyalty and travel programs
XRP’s application is expanding beyond financial entities, especially in loyalty, travel, and consumer services, adding practical utility for millions.
Examples:
Webus/Wetour has created a $300 million XRP treasury to support blockchain-based travel vouchers, loyalty points, and a settlement framework. Over 60 million loyalty members will utilize XRP for international services such as airport transfers, luxury rides, and travel experiences.
SBI VC Trade (Japan) allows customers to earn XRP rewards through loyalty initiatives, thereby increasing its use beyond trading.
When loyalty programs adopt XRP, it transitions from an investment asset to a medium users interact with daily, from redeeming points to traveling expenses.
Did you know? XRP TipBot (Netherlands, now discontinued) previously allowed for XRP tipping on social networks, showcasing micro-reward possibilities in loyalty environments.
3. Institutional adoption and treasury applications
When institutions recognize XRP as a reliable operational and treasury asset, it enhances credibility and bolsters demand, reflecting increasing faith in its long-term stability.
By utilizing XRP for liquidity management, settlements, and international transfers, these entities attest to its utility beyond speculation, affirming its position as an institutional-grade digital asset.
Examples:
SBI Holdings not only invests in Ripple but also integrates XRP across its subsidiaries (SBI Remit, SBI VC Trade) and maintains substantial XRP reserves.
Santander (Spain) has explored RippleNet and XRP-based settlements for cross-border payments via its One Pay FX platform.
Bank of America has been reported to partner with Ripple, considering XRP for cross-border efficiency.
The travel platform WeBus is allocating a significant XRP reserve, managed by an institutional fund manager, to support loyalty and settlement operations.
When companies incorporate XRP into their financial frameworks, it signifies confidence and sustains true demand beyond trading activity.
4. Technological capabilities and ledger advancements
XRPL presents speed, scalability, and innovation that attract use cases ranging from international payments and stablecoin issuance to tokenized assets and decentralized finance (DeFi) integrations.
Its minimal fees and environmentally friendly consensus mechanism render it one of the most feasible blockchains for mainstream adoption.
Examples:
Transaction speed: Settles in three to five seconds, unlike Bitcoin’s 10-minute wait or SWIFT’s multi-day process, supporting remittance and microtransaction use cases.
Low cost: Fees generally amount to a fraction of a cent, ideal for loyalty programs, micropayments, and minor rewards.
XLS-20 amendment: Introduced native non-fungible tokens (NFTs) on XRPL, enabling direct tokenization of loyalty points, tickets, and collectibles.
XLS-70 / XLS-80 proposals: Enhance digital credentials and domain controls, essential for regulated financial and enterprise applications.
Sologenic: (Built on XRPL) tokenizes stocks and ETFs, illustrating how XRPL technology supports financial assets beyond mere payments.
XRPL’s emphasis on real-world scalability is why businesses regard it as a foundational technology, not just a speculative option.
Did you know? The XRP Ledger operates without mining like Bitcoin or Ethereum. Instead, it employs a unique consensus system validated by a global network of over 150 independent validators, including universities, financial institutions, and community nodes, confirming transactions in just three to five seconds.
5. Regulatory clarity and network effects
The long-term value of XRP is linked not just to its technology and adoption rate, but also to regulatory perceptions and how expansive networks integrate it. By 2025, the regulatory climate and market conditions will have evolved significantly, providing XRP with greater clarity and momentum.
Clear legal status
In July 2023, US District Judge Analisa Torres ruled that XRP is not classified as a security when sold on exchanges, although direct institutional sales may be subjected to securities law.
In August 2025, Ripple and the US Securities and Exchange Commission concluded their five-year legal confrontation. The SEC abandoned its appeals, and Ripple consented to a $125 million civil penalty. This resolution delivers much-anticipated finality and regulatory assurance in the US market.
Regional regulatory alignment
Japan: XRP continues to maintain a clear legal standing, bolstered by proactive regulations and advocacy from SBI Holdings.
UK and EU: Ripple has actively worked to align XRP usage with the EU’s Markets in Crypto-Assets (MiCA) framework, ensuring compliance within European markets.
Network growth statistics
As of 2025, there are over 6.6 million active XRP wallets around the globe. Blockchain analysts estimate that more than 6 million individual XRPL accounts have been established.
SBI Group’s crypto exchanges (SBI VC Trade and BITPoint Japan) witnessed rapid growth, increasing from about 807,000 accounts in March 2024 to roughly 1.65 million by March 2025.
SBI Holdings possesses about 1.6 trillion Japanese yen ($10 billion) in 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 multiply: enhanced liquidity, expanded corridors, and increased opportunities for daily XRP usage.
Why does this matter?
The conclusion of the Ripple vs. SEC case in 2025 removes one of XRP’s most significant obstacles. Coupled with regulatory clarity in Asia and Europe, along with measurable growth in wallets, accounts, and corporate reserves, XRP now possesses both legal certainty and network reach necessary for driving adoption far beyond speculation.
Challenges still confronting XRP
XRP begins 2025 with legal clarity and expanding integrations, yet its usage remains comparatively low against stablecoins like USDC (USDC), which transact trillions annually.
Moreover, stablecoins and central bank digital currencies (CBDCs) are intensifying competition, backed by robust regulations and global payment infrastructures. In this context, XRP’s future hinges on its ability to extend adoption from basic infrastructure to widespread application.
Adoption vs. actual usage: Numerous integrations exist, yet user activity is lower than its potential. When contrasted with stablecoins, USDC (from Circle) showcases immense on-chain activity. For instance, in 2025, USDC’s annual transaction volume reached trillions of dollars ($5.9 trillion across a year) in on-chain transfers. This magnitude suggests that stablecoins are more thoroughly integrated into everyday transactions than many non-fiat cryptocurrencies.
Competition: In 2025, stablecoins and CBDCs are strong contenders against XRP: Fireblocks’ Network for Payments, Circle’s Arc Network, and Circle + FIS partnerships are facilitating USDC adoption across over 100 countries, while CBDCs promise state-supported digital money with regulatory assurance and seamless banking integration.
Regulation: The regulatory landscape is a double-edged sword for XRP. Although the US case closure in 2025 provided legal clarity, many areas still limit or fail to recognize XRP as currency. China bans most cryptocurrency usage, necessitating overseas-only alternatives, while international stablecoin regulation is tightening, raising compliance benchmarks but also enhancing trust in rivals like USDC. This combination of advancements and challenges indicates that XRP’s adoption prospects are still inconsistent across different markets.
Given these obstacles, XRP’s future relies on its capacity to transition from integration to active daily use and how it navigates the competitive landscape posed by stablecoins and CBDCs.
With legal clarity now attained and global partnerships extending, XRP finds itself at a pivotal moment: ready to bridge traditional finance and digital assets while being challenged to demonstrate its ability to succeed in an ever-evolving payment ecosystem.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.
