Expansion of XRP's Institutional Adoption Underpinned by Backing from China
In the ever-evolving world of cryptocurrencies, 2025 has seen a significant surge in institutional adoption of XRP and the XRP Ledger (XRPL). This shift can be attributed to the U.S. Securities and Exchange Commission's (SEC) 2025 settlement with Ripple Labs, which provided much-needed regulatory clarity, effectively removing key uncertainties for institutional investors.
The SEC's settlement has been a turning point, offering a stable legal standing for XRP. This has paved the way for broader institutional acceptance, transforming XRP from a mere cryptocurrency to a serious player in the global finance game.
One of the key drivers of institutional adoption is the growing demand from firms such as Galaxy Digital, which have integrated XRP into their portfolios for strategic purposes like cross-border payments and macro hedging. In Asia, South Korea's BDACS has introduced XRP custody solutions, making it easier for institutions to invest via major exchanges like Upbit and Coinone. Japan’s SBI Holdings stands out as a leading institutional holder, reportedly allocating around $10 billion to XRP.
The Asian market isn't the only one showing interest in XRP. Multiple asset managers have filed for XRP Exchange Traded Fund (ETF) approvals, with a 95% probability of approval by the end of 2025. The ProShares Ultra XRP ETF was launched in July 2025, marking the first SEC-approved investment product tied to XRP.
Institutions are attracted to XRP for its speed, low transaction fees, and utility in cross-border payments and yield generation through DeFi and staking integrations, despite XRPL not using proof-of-stake. The crypto-friendly regulatory policies, such as potential crypto 401(k) access and interest rate cuts, are increasing XRP’s appeal as a low-correlation asset within diversified institutional portfolios.
The addition of XRP to a corporate reserve by a top Chinese company is a testament to the growing confidence in XRP's long-term utility. Institutions are also using XRPL for payment corridors, stablecoin projects, and blockchain infrastructure.
Emerging tokens like BXE are also gaining attention as possible breakout stars in the crypto market. JackTheRippler, a prominent figure in the XRP community, has pointed out the rising potential of BXE Token and hinted at a possible surge in its price to $19-$24. However, it's important to remember the risks involved in emerging tokens like BXE.
In summary, following the regulatory clarity achieved in 2025, XRP and XRPL have gained strong momentum towards mainstream institutional adoption both in Asia (notably Japan and South Korea) and globally. This is reflected in increasing treasury allocations by public companies, ETF filings, expanded custody options, and Ripple's growing ambitions in cross-border payment infrastructure.
[1] CoinDesk. (2025). Ripple Settles SEC Case, Ending Legal Battle Over XRP. [online] Available at: https://www.coindesk.com/ripple-settles-sec-case-ending-legal-battle-over-xrp
[2] Cointelegraph. (2025). SBI Holdings Allocates $10 Billion to XRP, Files for Bitcoin-XRP ETF. [online] Available at: https://cointelegraph.com/news/sbi-holdings-allocates-10-billion-to-xrp-files-for-bitcoin-xrp-etf
[3] Bloomberg. (2025). ProShares Ultra XRP ETF Listed on NYSE Arca. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-20/proshares-ultra-xrp-etf-listed-on-nyse-arca
[4] Coindesk. (2025). Ripple's Cross-Border Payments Ambitions: A Look at the Current Landscape. [online] Available at: https://www.coindesk.com/ripple-cross-border-payments-ambitions-current-landscape
- In the wake of the SEC's 2025 settlement with Ripple Labs, Bitcoin and Ethereum are no longer the only cryptocurrencies experiencing institutional adoption, as XRP has gained significant traction.
- As a result of the growing institutional interest, XRP is increasingly being integrated into portfolios for strategic purposes like cross-border payments and macro hedging, with firms like Galaxy Digital leading the way.
- South Korea’s BDACS and Japan’s SBI Holdings have been at the forefront of institutional investment in XRP, with the latter reportedly allocating around $10 billion to the cryptocurrency.
- In addition to traditional institutional investment, multiple asset managers have filed for XRP Exchange Traded Fund (ETF) approvals, with a 95% probability of approval by the end of 2025.
- Institutions are drawn to XRP due to its speed, low transaction fees, utility in cross-border payments, and potential for yield generation through DeFi and staking integrations.
- Beyond XRP, emerging tokens like BXE Token are gaining attention as possible breakout stars in the crypto market, but it's crucial to remember the risks involved in investing in such token.
