🚨 WHY BANKS STILL CAN’T HOLD XRP — AND WHY THAT MAY CHANGE FAST
Under Basel III, XRP is currently classified as Type 2 crypto exposure, carrying a punitive 1250% risk weight.
What that means in plain terms: 👉 For every $1 of XRP, a bank must hold $12.50 in regulatory capital.
That makes holding XRP on a balance sheet capital-inefficient to the point of being irrational.
This is the real reason behind years of institutional hesitation —
not technology, not liquidity, not demand — but capital rules.
⚠️ Here’s the inflection point most markets are missing:
As legal and regulatory clarity improves, XRP has a credible pathway toward reclassification into a lower-risk Basel category (Type 2B / qualifying exposure).
If that happens, the math changes overnight.
✅ XRP becomes balance-sheet holdable
✅ Banks can custody and deploy XRP without capital punishment
✅ Liquidity shifts from off-balance-sheet usage to direct institutional ownership
This is not about hype or short-term price action.
This is about Basel capital mechanics — the same rules that decide whether trillions move or stay sidelined.
Endgame thesis: XRP positioning itself as a Tier-1 institutional digital asset.
Markets don’t front-run narratives.
They front-run regulatory reclassification.
And when capital rules flip —
demand doesn’t trickle in, it switches on.
That’s the setup most people still aren’t modeling.
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