Much of the speculation around XRP often centers on price. However, some arguments go beyond that, focusing on structure, regulation, and how large institutions classify assets.
Crypto expert UnknowDLT recently commented on the digital asset, arguing that Ripple’s relationships with Tier 1 banks exist because XRP itself is designed to meet standards associated with Tier 1 assets.
He went further, stating that XRP will be classified as a Tier 1 asset by the Bank for International Settlements (BIS), placing it alongside gold. He added that “most XRP holders are not ready for what is coming.”
Ripple has TIER 1 banks as partners because XRP will be classified as TIER 1 by the BIS. You read that right. XRP will be a TIER 1 asset alongside gold.
Most XRP holders are not ready for what is coming for XRP.
— {x} (@unknowDLT) December 29, 2025
What Does this Mean for XRP?
UnknowDLT’s comments focus on classification, not short-term market cycles. His core claim is that XRP’s architecture and regulatory positioning explain why Ripple has attracted Tier 1 banking partners. In his view, these institutions do not engage lightly. They select infrastructure that fits strict capital, liquidity, and settlement requirements.
By linking XRP to Tier 1 status, UnknowDLT indicates how banks measure balance sheet risk. Tier 1 assets sit at the top of that hierarchy. They carry the lowest perceived risk and the highest trust. Gold occupies that category today, and he places XRP in that same lane.
XRP’s Design and Institutional Fit
XRP was built for fast settlement, low transaction cost, and high throughput. These traits align with institutional payment flows. Finality occurs in seconds, and liquidity moves without relying on pre-funded accounts.
Banks operate under strict efficiency and risk rules. They care about settlement certainty and operational cost. XRP addresses both directly. This is where UnknowDLT’s argument finds technical support. The asset was not built for casual transfers alone. It targets cross-border settlement at scale.
Regulatory clarity also plays a role. Ripple has consistently positioned XRP within compliance-focused discussions. That posture appeals to institutions that cannot experiment outside defined rules. UnknowDLT’s comments suggest that this regulatory alignment supports his Tier 1 thesis.
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Why This Narrative Matters for XRP’s Price
If institutions treat an asset as structurally critical, the global demand changes. Liquidity deepens, and volatility will compress over time. Whales and other large players accumulate through utility rather than speculation, and that quiet process could cause rapid growth.
UnknowDLT implies that XRP’s value could change drastically if banks treat it as core infrastructure rather than a peripheral digital asset. Higher usage would tighten the available supply in open markets, and that pressure can push prices higher without retail-driven cycles.
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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