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- A Top market analyst have shared 11 unique reasons why Ripple Labs and XRP might keep soaring.
- Among the plans include Ripple’s IPO plans and improving regulations.
Ripple Labs Inc., a blockchain-based financial firm, has evolved into a powerful payment solution in the crypto space. At the same time, Ripple’s associated native digital asset, XRP, is now widely adopted for cross-border settlements. Despite its increasing prominence, Ripple and XRP have encountered several challenges over the past few years.
A popular crypto community figure, Luke Thomas, recently outlined 11 key events that could strengthen Ripple and XRP’s position in the financial sector. He thinks Donald Trump’s victory at the White House could influence some of these potential events.
Here are the 11 key events that could make a difference in Ripple and XRP’s future:
Stablecoin Regulation and XRP ETF Approval
Thomas believes the US government, under Trump’s leadership, will establish clear regulations for stablecoins. According to him, a clear stablecoin guideline will allow Ripple to launch its highly anticipated stablecoin, RLUSD. Although Ripple has teamed up with some top exchanges to distribute RLUSD, the project is still awaiting regulatory approval.
Thomas noted the second potential event: the potential approvals of XRP Exchange-Traded Funds (ETFs). He speculates that top asset management firms like BlackRock will soon submit applications for spot XRP ETFs. He compares them to BlackRock’s Bitcoin ETFs, which have attracted a lot of institutional interest.
Thomas thinks institutional players will likely offer potential XRP ETFs exclusively or bundled with other top cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Solana. Asset managers like Bitwise, Canary Capital, and 21Shares have already submitted proposals for XRP ETFs. Furthermore, Grayscale has applied for regulatory approval to turn its multi-asset trust, which includes XRP, into an ETF.
Potential Ripple vs. SEC Settlement and IPO Plans
Another key update in Thomas’ projections is a possible settlement in the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). The case is progressing toward appeal, with a briefing deadline of January 2025. Still, Thomas claims the settlement will likely involve Ripple paying the $125 million fine imposed by the court.
The recent change in the US political scene is a key factor influencing this projection. Thomas thinks that a new Trump administration may result in the departure of SEC Chair Gary Gensler, potentially the lawsuit’s trajectory.
Additionally, Thomas’s projections featured Ripple’s potential plans for an Initial Public Offering (IPO). Meanwhile, Ripple initially ruled out a US-based IPO owing to regulatory uncertainties. However, Thomas believes an eventual settlement with the SEC may allow Ripple to launch an IPO, probably in Q3 or Q4 of 2025.
XRP Adoption and M&A Engagements
Moving on, Thomas predicts that banks, particularly those in the United States, would adopt XRP for cross-border transactions. He speculates that one of the top five banks in the United States may commit to integrating XRP for these purposes.
He anticipates that Ripple may engage in strategic acquisitions, particularly in the Real-World Assets (RWA) sector following a successful IPO. Ripple’s acquisition of Metaco illustrates the company’s growing interest in asset tokenization.
Impact of Crypto Regulation and Increased Banking Services
Furthermore, Thomas anticipates a market shift from memecoins and non-utility tokens upon the establishment of a clear crypto guideline. He believes this shift will favor utility-focused assets like XRP that provide tangible benefits in financial services.
He added that clear crypto regulations would also allow banks explore digital assets utility in traditional financial services. This could permit Gen X and Boomers to manage cryptocurrencies like XRP within their bank accounts’ mobile smart wallets.
Expanding XRP Use Cases Via SWIFT Integration and CBDCs
One key update mentioned by Thomas is a potential partnership between Ripple and SWIFT. According to Thomas, such collaboration will see SWIFT joining the XRPL ecosystem to facilitate cross-border payments and real estate tokenization. While the current situation makes it unlikely, Thomas sees it as a possibility that would greatly benefit both entities.
Furthermore, Thomas envisions a future where Ripple will continue its efforts to position itself within the Central Bank Digital Currency (CBDC) sector. This could help expand its influence in crypto-fiat conversions and stablecoin offerings while establishing XRP as a “Universal Bridge Currency.”
Ripple International Businesses
Thomas concluded that Ripple is well-positioned to become the first double-digit trillion-dollar crypto corporation once US crypto legislation is implemented. While this ambition is lofty, Thomas believes that Ripple’s expanding international businesses make it feasible.
Overall, Thomas’s projections highlight the potential for major advancements in Ripple’s operations, XRP’s market presence, and digital assets’ role in global finance.