XRP Grabs Fresh Means to Win

A bold claim recently surfaced on X, shared by X Finance Bull: “This is how XRP wins.” At a time when banks are facing some of the strictest capital rules in modern history, Ripple’s XRP appears to offer not just a solution, but a lifeline.

Basel III: The Growing Pressure on Banks

Basel III, finalized by the Basel Committee in 2017 and set for full implementation by 2025, was designed to strengthen the global banking system. It raises the bar on liquidity coverage, leverage ratios, and capital adequacy. In practical terms, it means banks must hold a larger amount of high-quality liquid assets, mostly idle and low-yielding, to hedge against financial shocks.

Under current regulations, banks must hold capital equal to 100% of the value of crypto assets such as XRP, making these holdings costly and inefficient. This requirement further strains liquidity and forces banks to tie up billions in reserves, capital that could otherwise be deployed for productive use.

According to the IMF, global banks held over $1.2 trillion in capital reserves as of 2024. With Basel III’s “endgame” in sight, many institutions are desperate to find ways to reduce that burden.

Ripple’s Instant Settlement: A Capital Efficiency Tool

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Ripple, the company behind XRP, offers a clear alternative: instant settlement using XRP as a bridge asset. This eliminates the need for pre-funded nostro accounts and shortens settlement windows from days to seconds. By reducing the time capital is locked up in the settlement process, banks can free up liquidity and potentially reduce the amount of capital they’re required to hold.

A 2017 Bank for International Settlements (BIS) report already hinted at this: faster settlements could lead to significantly lower capital requirements, as funds are no longer trapped in long cross-border processes. Ripple’s solution brings that theory to life.

As X Finance Bull put it: “XRP doesn’t just move money, it cuts deep costs banks are desperate to eliminate.”

Ripple’s Regulatory Strategy Gains Momentum

Critics often argue that banks won’t adopt XRP because of regulatory uncertainty. But Ripple is actively working to dismantle that narrative. In July 2025, the company applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This move could bring Ripple into direct alignment with federal banking regulations.

The proposed “Ripple National Trust Bank” would offer custody for digital assets, stablecoin issuance (including Ripple’s RLUSD), and may even seek access to Federal Reserve settlement systems. If approved, this would mark a significant step toward integrating XRP into the heart of traditional finance.

XRP’s Strategic Edge

The timing is critical. As the Federal Reserve considers easing parts of the Basel III endgame capital rules, banks are reassessing their long-term strategies. With pressure mounting to optimize balance sheets and enhance efficiency, XRP’s role as a settlement asset could become indispensable, especially if paired with regulatory clarity and federal backing.

XRP isn’t just a speculative asset anymore. It’s becoming a strategic instrument—one that addresses real problems banks are currently facing. And as capital regulations tighten, that utility is more valuable than ever.

The world is watching. XRP, it seems, is just getting started.

Disclaimer***:*** This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.