Key takeaways:
XRP streamlines cross-border remittances by removing pre-funding, proving essential in emerging markets.
Loyalty and travel programs are integrating XRP into everyday transactions, transforming it from an investment asset to a viable payment method.
Institutions like SBI and Santander enhance credibility by maintaining XRP reserves and investigating settlement applications.
Following the resolution of the SEC case and increasing global clarity, XRP possesses the legal certainty and network capacity necessary for broader adoption.
XRP (XRP), the native digital asset of the XRP Ledger (XRPL), is often evaluated based on market speculation. However, its relevance is much deeper when considering real-world applications, institutional backing, and regulatory clarity.
Here are five reasons illustrating why XRP is significant beyond its market value.
1. Cross-border payments and remittance efficiency
XRP is a crucial facilitator of international payments, as it eliminates pre-funding, shortens settlement durations, and lowers costs by functioning as a bridge currency.
Examples:
In contrast to SWIFT, which can take days and involves considerable fees, XRP’s rapid settlement process is particularly appealing in emerging markets that depend heavily on remittances.
2. Loyalty and travel program integration
XRP is finding applications outside of financial institutions, especially in loyalty, travel, and consumer services, increasing its everyday usefulness for millions.
Examples:
Webus/Wetour has formed a $300-million XRP treasury to support blockchain-based travel vouchers, loyalty points, and settlement mechanisms. With over 60 million loyalty members, XRP can be utilized for international services like airport transfers, premium rides, and travel activities.
SBI VC Trade (Japan) allows customers to earn XRP rewards through loyalty initiatives, further extending its utility beyond trading.
As loyalty programs integrate XRP, it transitions from being merely an investment to a practical asset for daily engagement, whether redeeming points or settling travel bills.
Did you know? XRP TipBot (Netherlands, now discontinued) once enabled users to tip XRP on social media, highlighting the potential for micro-reward systems in loyalty ecosystems.
3. Institutional adoption and treasury use
When institutions treat XRP as a legitimate operational and treasury asset, they add legitimacy and demand, thus reflecting their growing confidence in its long-term viability.
Utilizing XRP for liquidity management, settlements, and cross-border transactions confirms its practical utility beyond speculative trading, enhancing its position as a prominent institutional asset.
Examples:
SBI Holdings not only invests in Ripple but also incorporates XRP in its subsidiaries (SBI Remit, SBI VC Trade) while holding substantial XRP reserves.
Santander (Spain) has tested RippleNet and examined XRP-based settlement for cross-border transactions via its One Pay FX platform.
Bank of America has reportedly partnered with Ripple, investigating XRP settlement for enhanced cross-border efficiency.
Travel platform WeBus is reserving a significant amount of XRP, managed by an institutional fund manager, to underpin loyalty and settlement initiatives.
When companies incorporate XRP into their financial frameworks or payment systems, it signifies confidence and drives genuine demand beyond the trading community.
4. Technological features and ledger upgrades
XRPL boasts speed, scalability, and innovation that continue to attract applications ranging from cross-border payments to stablecoin deployment and tokenized assets, including decentralized finance (DeFi) integrations.
With its minimal fees and environmentally sustainable consensus model, XRPL is among the most feasible blockchains for practical adoption.
Examples:
Transaction speed: Settles in three to five seconds, in contrast to Bitcoin’s 10 minutes or SWIFT’s two to five days, facilitating remittance and microtransaction applications.
Low cost: Fees are typically a fraction of a cent, making it suitable for loyalty schemes, micropayments, and minor rewards.
XLS-20 amendment: Introduced native non-fungible tokens (NFTs) on XRPL, allowing loyalty points, tickets, and collectibles to be tokenized on-chain.
XLS-70 / XLS-80 proposals: Enhance digital credentials and permissioned domain controls, essential for regulated enterprises and financial sectors.
Sologenic: (Built on XRPL) tokenizes stocks and exchange-traded funds (ETFs), demonstrating XRPL’s technology supporting financial assets beyond payments.
XRPL’s commitment to real-world scalability explains why businesses view it as robust infrastructure rather than merely a speculative asset.
Did you know? The XRP Ledger does not depend on mining like Bitcoin or Ethereum; instead, it utilizes a unique consensus mechanism validated by a global network of over 150 independent validators, including universities, financial entities, and community-operated nodes, to confirm transactions in just three to five seconds.
5. Regulatory clarity and network effects
XRP’s long-term value correlates not only with its technology and adoption but also with regulatory treatment and large network integrations. By 2025, the regulatory and market landscape will have evolved significantly, providing XRP with enhanced 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 institutional sales may be subject to securities laws.
In August 2025, Ripple and the US Securities and Exchange Commission concluded their five-year legal dispute. The SEC retracted its appeals, and Ripple agreed to a $125-million civil penalty. This resolution provides long-desired finality and regulatory assurance in the US market.
Regional regulatory alignment
Japan: XRP is one of the few cryptocurrencies with a definitive legal status, supported by forward-thinking regulations and advocacy from SBI Holdings.
UK and EU: Ripple is actively working to align XRP’s use with the EU’s Markets in Crypto-Assets (MiCA) framework to ensure compliance in European markets.
Network growth in numbers
By 2025, there are over 6.6 million active XRP wallets worldwide. Blockchain explorers estimate the creation of more than 6 million individual XRPL accounts.
SBI Group’s cryptocurrency exchanges (SBI VC Trade and BITPoint Japan) have rapidly expanded, growing from approximately 807,000 accounts in March 2024 to around 1.65 million by March 2025.
SBI Holdings holds 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 amplify: increasing liquidity, expanding corridors, and enhancing daily XRP application opportunities.
Why is this important?
The conclusion of the Ripple vs. SEC case in 2025 removes one of XRP’s most significant obstacles. Coupled with regulatory assurance in Asia and Europe, and observable growth in wallets, accounts, and corporate reserves, XRP now enjoys both legal clarity and the network reach essential for adoption exceeding mere speculation.
Challenges XRP still faces
XRP enters 2025 with legal clarity and increasing integrations, but its usage is still lower compared to stablecoins like USDC (USDC), which facilitate trillions annually.
At the same time, stablecoins and central bank digital currencies (CBDCs) are ramping up competition with strong regulatory support and global payment networks. In this context, XRP’s future relies on its ability to scale adoption beyond infrastructure to widespread practical use.
Adoption vs. actual usage: While numerous integrations exist, user activity is still below its potential. In comparison to stablecoins, USDC (by Circle) displays massive on-chain volume. For example, in 2025, USDC’s annual transaction volume reached trillions of dollars ($5.9 trillion over a year) in on-chain transfers. Such scale indicates that stablecoins are being used more broadly (for payments, transfers, etc.) than many non-fiat cryptocurrencies.
Competition: In 2025, stablecoins and CBDCs represent significant competition for XRP: Fireblocks’ Network for Payments, Circle’s Arc network, and Circle + FIS partnerships are promoting USDC adoption across 100+ countries, while CBDCs offer government-backed digital currency with regulatory confidence and seamless banking integration.
Regulation: Regulation remains a double-edged sword for XRP. Although the conclusion of the US case in 2025 provided legal clarity, certain regions still impose restrictions or decline to classify XRP as currency. China prohibits most crypto activities, necessitating overseas alternatives, and global stablecoin regulations are tightening, which raises compliance requirements and enhances trust in competitors like USDC. This combination of advancements and hurdles results in XRP’s adoption potential being inconsistent across various markets.
Given these obstacles, XRP’s future hinges on its capacity to transition from mere integration to everyday use and how it navigates competition from stablecoins and CBDCs.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
