Ripple’s technology could become increasingly influential in global payments if it enables financial institutions to process high-value cross-border transactions at much lower fees than traditional methods.
Analysts highlight XRP’s potential in institutional markets
Financial analyst Steph Is Crypto recently outlined a bullish perspective on how Ripple, RLUSD stablecoin, XRP, and the ISO 20022 messaging standard may collaborate to reshape the digital asset landscape. According to Steph, Ripple’s shift toward banking services could mark a pivotal development in the company’s trajectory.
During a detailed broadcast, Steph described a scenario where Ripple’s access to stablecoin reserves within a government treasury could directly link Ripple and RLUSD to state-backed stablecoin transactions. He claimed this could improve liquidity across the Ripple ecosystem and drive wider adoption of the asset.
Expanding on this perspective, Steph suggested that increased liquidity could enhance XRP’s market performance and stimulate greater demand. He pointed to the possibility of XRP prices approaching $10 to $12 during a bullish cycle. However, he emphasized that the real transformation may arrive in XRP’s “utility phase,” as practical settlement use cases take center stage.
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Market participants considered that as Ripple completes a transition into banking, regulatory approval could fundamentally change the way financial institutions utilize its technology and XRP.
XRP’s utility and settlement efficiency
Steph placed strong emphasis on XRP’s capabilities as a settlement asset for large-value cross-border payments executed by banks and institutional clients. He argued that the asset could deliver faster and lower-cost transaction processing compared to legacy banking infrastructure, specifically for global money movement.
He linked this functionality to ISO 20022, describing it as a next-generation messaging standard that would allow Ripple’s solutions to operate alongside government platforms without requiring SWIFT for the full settlement process.
According to Steph’s analysis, the difference in transaction costs is a critical reason why major institutions may consider adopting Ripple’s infrastructure. For example, he suggested that a $1 million transfer routed through conventional banks and SWIFT might cost $1,000, while a similar transaction processed via Ripple’s network could incur fees below $10 before additional Ripple charges are added.
He clarified that these figures are illustrative, but argued that Ripple could still offer significant cost savings even after fees, compared to existing financial systems.
As Steph described, ISO 20022, XRP, and high-value settlement transactions are interconnected in his thesis; increased institutional reliance on Ripple’s rails could foster actual practical demand for $XRP.
The institutional shift toward Web3 tokenization
As Ripple explores these banking models and settlement improvements, global markets are witnessing a broader move away from traditional brokers. Wall Street is now entering the Web3 space, as more investors use platforms like 1stepSwap to hold shares of major U.S. corporations, gold, and silver directly in digital wallets. Through tokenizing real-world assets and instant price discovery, these platforms bypass intermediaries and promise direct, efficient transactions.
Speed, reduced transaction costs, and lower risk of payment failures are recurring themes as crypto infrastructure advances. Steph argued that Ripple’s expanding offerings could appeal to more institutions by delivering significant cost margins and attracting adoption through more reliable cross-border payments.
Ultimately, Ripple’s potential evolution into a regulated banking entity could signal a significant turning point. Steph described this as a shift from speculative interest in XRP to a focus on tangible use in international financial systems.
