Ripple’s approval to establish a national trust bank marks a significant development in its expansion into traditional finance. However, XRP holders are still waiting for the asset’s market performance to reflect the company’s growing presence in the financial sector.
Crypto commentator Digital Perspectives has examined this disconnect, noting that Ripple’s latest developments could eventually strengthen XRP’s role in institutional payments, liquidity and settlement.
In a video shared on X, host Brad Kimes discussed Ripple’s banking approval, its expanding financial operations, XRP’s existing utility on the XRP Ledger and the possibility of the asset becoming part of the underlying infrastructure of the US financial system.
Ripple Became A Bank. XRP Is Still Stuck. Here's Why (XRP) pic.twitter.com/hYnaIejMgR
— Digital Perspectives (@DigPerspectives) November 2, 2026
Ripple’s Banking Approval and XRP’s Price Performance
Kimes began by acknowledging the frustration among XRP holders over the cryptocurrency’s price performance despite Ripple securing a major regulatory milestone. He referenced XRP trading around $1.24 during the recording, while the broader cryptocurrency market had a capitalization of approximately $2.68 trillion.
He described the Office of the Comptroller of the Currency’s final approval of Ripple’s national trust bank charter as one of the most significant developments in the company’s history. According to Kimes, the approval strengthens Ripple’s position within the traditional banking system and provides additional opportunities to expand its financial services.
He also presented his long-term outlook for Ripple and XRP, suggesting that the company could become an important part of US financial infrastructure, with XRP potentially serving as a wholesale settlement asset. However, he acknowledged that this remains his personal assessment rather than an established government plan.
Ripple Prime Expands XRP’s Institutional Utility
Kimes also examined Ripple Prime’s growing role in institutional finance, particularly its capacity to support digital assets as collateral.
Referencing comments from Ripple Prime executive Mike Higgins, he explained that institutions could use assets such as XRP, Bitcoin and Ethereum for margin and collateral purposes. This arrangement could allow institutions to borrow against their XRP holdings without selling their positions, preserving their exposure while accessing liquidity for other transactions.
He also highlighted Ripple Prime’s reported $3 trillion in annual clearing activity and its connections to traditional financial market infrastructure. Kimes noted that these capabilities could help establish the operational requirements for wider institutional participation in digital assets.
Another development involved Ripple Treasury, formerly G Treasury. Kimes pointed to its introduction of digital asset capabilities and referenced Brad Garlinghouse’s comments about the platform serving more than 1,000 chief financial officers, with access to a corporate finance market valued at approximately $13 trillion.
XRP’s Role in Automated Settlement
The commentator also examined XRP’s existing function on the XRP Ledger’s decentralized exchange. He referenced Vette’s explanation that XRP can automatically bridge transactions between issued assets when routing through XRP provides better conversion rates than direct exchanges.
The discussion included euro-to-dollar transactions, with XRP potentially offering a more efficient settlement route under certain market conditions.
Kimes further addressed concerns that Ripple’s stablecoin, RLUSD, could reduce XRP’s importance. He argued that stablecoins can encourage businesses to adopt blockchain-based financial services, potentially creating additional opportunities for XRP through liquidity and settlement activity.
Could XRP Eventually Support Wholesale Financial Settlement?
Towards the end of the video, Kimes connected Ripple’s banking approval and expanding financial operations to his long-standing belief that XRP could eventually support wholesale financial settlement.
He referenced discussions about a possible wholesale central bank digital currency by 2030, suggesting that XRP could potentially play a role in such a system. However, he acknowledged that its involvement remains speculative.
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 advised to conduct thorough 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.
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