As the banking industry looks for new ways to streamline international payments, XRP’s role as a bridge currency is being revisited. But what would happen if some of the world’s largest banks allocated just 0.5% of their assets to XRP? A potential price surge could be in the works, driven by a massive influx of capital.

The Scale of Investment: Nine Banks, $148.7 Billion

In a thought experiment by market analyst Steph, if nine of the world’s biggest banks—with almost $30 trillion in assets combined—put just 0.5% of what they own into XRP, it could pump in over $148 billion. Numbers from CompaniesMarketCap show the China Construction Bank has $5.837 trillion in assets, while JP Morgan and Bank of America have $4.210 trillion and $3.324 trillion.

When the banks scoop up all the XRP, retail investors might be left watching from the sidelines. Steph_iscrypto via X

If these big money giants decided to invest 0.5% of their assets in XRP, they’d buy about 64.66 billion XRP tokens. This amount makes up 65% of the token’s available supply. If XRP’s price were to remain at its current value of around $2.30, the implications are staggering: these banks could absorb an enormous portion of the circulating supply, potentially causing a supply shock.

Ripple Effect: Price Predictions Amid a Supply Shock

What would such a massive purchase mean for XRP’s price? According to analysts, the result could be a sharp price spike. With a total supply of 100 billion XRP, the market could experience significant upward pressure as the banks collectively withdraw 64.66 billion tokens from circulation.

The XRP price holds above the current support near $2.28. Source: Sirkamal on TradingView

One estimate, based on the market cap formula, suggests that XRP could more than double in value if the price scaled proportionally to the increased market capitalization. This would bring XRP to around $4.60. But this idea assumes the market will react in a straight line, which might not happen. If supply gets tight and more people want XRP, its price could shoot up way past that. Some guesses say it could hit $10, $20, or even $50, depending on how the market reacts.

A Cautious Approach to XRP’s Long-Term Prospects

XRP’s recent boom calls for caution from investors. The cryptocurrency’s value jumped 350% in the last year, but it’s still unpredictable. Just days ago, its price fell by over 3% showing how things can change.

The XRP price is still under an overall bullish trend and expected to plot a higher-low on the daily chart. Source: MissouriTim on TradingView

New U.S. rules have boosted XRP’s prospects. The Trump team’s crypto-friendly approach has eased limits on digital money. This has caught the eye of big firms as talk grows about a possible deal in the Ripple vs. SEC case under new SEC leadership. If XRP gets clearer rules, more banks and money firms might start using it.

Yet, XRP’s success isn’t a sure thing. Money firms still doubt if it will last. Big names like SWIFT still run most cross-border payments, helping thousands of firms worldwide. Plus, while the current government likes digital money, future rule changes could throw XRP off course.

The Uncertainty of Institutional Adoption

Although XRP’s potential as a fast and cheap bridge currency is still attractive, institutional scale-up has not yet been achieved. There has been some Ripple progress, for example through recently negotiated contracts such as the Unicâmbio agreement, a Portuguese currency exchange. The scope of this partnership is to improve cross-border transaction value between Brazil and Portugal and uses XRP to accelerate and reduce the cost of money transfers.

An XRP ETF approval could trigger a 40-75% rally, with some analysts predicting $10+ if institutions get involved. Source: Keyur on TradingView

Nevertheless, with or without those collaborations the price and community of XRP have been a hard nut to crack. However, positive steps aside, including the launch of XRP-dedicated exchange-traded funds (ETFs), the cryptocurrency is on the receiving end of headwinds. Short-term profits have frequently been followed by drops, making some investors wary.

Watch – XRP Price Analysis Video

Looking Ahead: Should You Buy XRP?

With XRP’s price hovering around $2.40 as of February 2025, many are debating whether now is the right time to invest. What crypto should you buy, they ask? While XRP offers promising technological advancements in payment processing, its market volatility and regulatory uncertainty remain significant challenges.

For those with a high risk tolerance, XRP could present an intriguing investment opportunity. However, as always in the volatile world of cryptocurrency, potential buyers should do their own research and consider the unpredictable nature of the market before making any decisions.

The XRP price is at $2.39, down 2.07% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

In conclusion, if nine of the world’s largest banks were to buy XRP with just 0.5% of their assets, the results could be dramatic. While the price surge could be substantial, there are still many moving parts in the crypto market and institutional adoption process. Whether this potential becomes a reality depends on multiple factors, including regulatory clarity and broader market sentiment.