Key takeaways:
XRP streamlines cross-border remittances by eliminating pre-funding, making it particularly beneficial for emerging markets.
Loyalty and travel programs are integrating XRP into everyday transactions, evolving it from an investment into a functional payment method.
Entities like SBI and Santander bolster XRP’s credibility by maintaining reserves and exploring various settlement applications.
With the SEC lawsuit concluded and increasing global clarity, XRP now enjoys legal certainty and an expanded network to enhance its adoption.
XRP (XRP), the native digital asset of the XRP Ledger (XRPL), is often viewed in the context of market speculation. However, its importance is much broader when considering real-world applications, institutional backing, and regulatory clarity.
Here are five key reasons why XRP has significance beyond its market valuation.
1. Efficiency in cross-border payments and remittances
XRP serves as a powerful tool for international payments. It eliminates the need for pre-funding, reduces settlement times, and lowers costs by functioning as a bridge currency.
Examples:
Unlike SWIFT, which can take several days and involve hefty fees, XRP offers near-instant settlement, making it appealing in emerging markets that rely heavily on remittances.
2. Integration into loyalty and travel programs
Increasingly, XRP is finding utility outside financial institutions, especially in the realms of loyalty, travel, and consumer services. This creates daily use cases for millions.
Examples:
Webus/Wetour has created a $300-million XRP treasury to fund blockchain-driven travel vouchers, loyalty points, and settlement structures. More than 60 million loyalty members will be able to use XRP for overseas services such as airport transfers, premium rides, and travel experiences.
SBI VC Trade (Japan) allows customers to earn XRP rewards through loyalty initiatives, broadening its application beyond trading.
When loyalty programs incorporate XRP, it transforms from an investment asset to a practical resource for users, who can redeem points or pay for travel.
Did you know? XRP TipBot (Netherlands, now discontinued) enabled users to tip in XRP on social media platforms, showcasing the micro-reward potential within loyalty-based ecosystems.
3. Institutional embrace and treasury functions
Organizations treating XRP as a viable operational and treasury asset add credibility and drive demand, reflecting increasing confidence in its long-term stability.
By leveraging XRP for liquidity management, settlements, and cross-border transactions, these institutions validate its utility beyond speculation, reinforcing its position 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) and maintains significant XRP reserves.
Santander (Spain) has piloted RippleNet and investigated XRP-based settlements for international transactions through its One Pay FX platform.
Bank of America has been reported to partner with Ripple, exploring XRP settlements for increased efficiency in cross-border payments.
Travel platform WeBus is reserving a substantial amount of XRP, managed by an institutional fund manager, to support loyalty and settlement functions.
The inclusion of XRP into corporate balance sheets or payment infrastructures signals confidence and creates genuine demand beyond just traders.
4. Technological advancements and ledger improvements
XRPL delivers speed, scalability, and innovation that continually attract diverse use cases, spanning cross-border payments, stablecoin issuance, tokenized assets, and decentralized finance (DeFi) applications.
Its minimal fees and eco-friendly consensus mechanism position it as one of the most applicable blockchains for real-world usage.
Examples:
Transaction speed: Settles in three to five seconds, starkly faster than Bitcoin’s 10 minutes and SWIFT’s two to five days, making it suitable for remittance and microtransactions.
Low cost: Transaction fees are just a fraction of a cent, fitting for loyalty programs, micropayments, and small rewards.
XLS-20 amendment: Enabled native non-fungible tokens (NFTs) on XRPL, allowing the tokenization of loyalty points, tickets, and collectibles directly on-chain.
XLS-70 / XLS-80 proposals: Enhance digital credentials and controls for permissioned domains, which is essential for financial and enterprise adoption.
Sologenic: (Built on XRPL) tokenizes stocks and exchange-traded funds (ETFs), exemplifying how XRPL technology supports financial assets beyond mere payments.
XRPL’s commitment to real-world scalability is why many businesses view it as foundational infrastructure, rather than just a speculative venture.
Did you know? The XRP Ledger operates without mining like Bitcoin or Ethereum. Instead, it employs a unique consensus model validated by a global network of over 150 independent validators, inclusive of universities, financial entities, and community-run nodes, to confirm transactions in merely three to five seconds.
5. Regulatory clarity and network implications
The long-term value of XRP is linked not only to technological advances and adoption but also to regulatory perspectives and the integration by significant networks. By 2025, the regulatory landscape will have transformed considerably, providing XRP with enhanced clarity and momentum.
Clear legal standing
In July 2023, US District Judge Analisa Torres ruled that XRP is not classified as a security when sold on exchanges, although direct institutional transactions may still fall under securities regulation.
In August 2025, Ripple and the US Securities and Exchange Commission concluded their five-year legal dispute. The SEC ceased its appeals, and Ripple settled with a $125-million civil penalty. This resolution heralds the long-awaited finality and regulatory certainty in the US market.
Regional regulatory alignment
Japan: XRP remains among the few cryptocurrencies with well-defined legal status, due in large part to proactive regulations and the advocacy of SBI Holdings.
UK and EU: Ripple has actively worked to align XRP’s utilization with the EU’s Markets in Crypto-Assets (MiCA) framework, thereby ensuring compliance within European markets.
Network expansion in numbers
By 2025, over 6.6 million active XRP wallets have been recorded worldwide. Blockchain explorers estimate that more than 6 million individual XRPL accounts exist.
SBI Group’s crypto exchanges (SBI VC Trade and BITPoint Japan) expanded significantly, increasing from about 807,000 accounts in March 2024 to roughly 1.65 million by March 2025.
SBI Holdings currently possesses about 1.6 trillion Japanese yen ($10 billion) worth of XRP and Ripple-related assets, surpassing its own market capitalization of 1.2 trillion yen.
As banks, exchanges, and consumer platforms adopt XRP, network effects escalate: increasing liquidity, more transaction corridors, and greater practical applications of XRP in everyday life.
Why is this significant?
The conclusion of the Ripple vs. SEC lawsuit in 2025 lifts one of XRP’s most significant hindrances. The resulting regulatory clarity in Asia and Europe, combined with tangible growth in wallets, accounts, and corporate reserves, equips XRP with both the legal assurance and network capacity to enhance adoption well beyond speculation.
Challenges XRP still encounters
XRP steps into 2025 with newfound legal clarity and expanding integrations, but its actual usage still falls behind stablecoins like USDC (USDC), which handle trillions annually.
Moreover, stablecoins and central bank digital currencies (CBDCs) are intensifying competition with extensive regulatory support and global payment networks. Given this backdrop, XRP’s future hinges on its ability to escalate adoption beyond infrastructure to widespread, tangible usage.
Adoption versus actual usage: Numerous integrations exist, yet user engagement remains below potential levels. In contrast, stablecoins like USDC exhibit far greater on-chain activity. For example, in 2025, USDC’s annual transaction volume reaches trillions of dollars ($5.9 trillion over a year) in on-chain transfers. This suggests the broader utility of stablecoins over many non-fiat cryptocurrencies.
Competition: In 2025, stablecoins and CBDCs represent formidable rivals to XRP: Fireblocks’ Network for Payments, Circle’s Arc network, and partnerships between Circle and FIS are driving USDC adoption in over 100 countries, while CBDCs promise state-backed digital currency, fostering regulatory confidence and user-friendly banking integration.
Regulation: While the resolution of the US case in 2025 brings legal clarity, certain regions continue to impose restrictions or outright refusal to recognize XRP as a legitimate currency. For instance, China prohibits most cryptocurrency activities, necessitating overseas-only solutions, and global stablecoin regulations are tightening, raising compliance demands but concurrently bolstering trust in rivals like USDC. This blend of progress and obstacles indicates that XRP’s adoption potential remains inconsistent across different markets.
Considering these challenges, XRP’s future is contingent upon its capacity to transition from integration to everyday application, as well as its strategy for navigating competition from stablecoins and CBDCs.
With legal clarity now achieved and global partnerships on the rise, XRP finds itself at a pivotal juncture: ready to connect traditional finance with digital assets while facing the challenge of demonstrating its ability to thrive in a swiftly changing payments ecosystem.
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.
