Why Banks Won't Hold XRP (Yet)

The single biggest brake on institutional XRP adoption isn't tech or lawsuits—it’s global banking capital rules.

The Problem:

· Basel III classifies XRP as a high-risk "Type 2" asset.

· Punitive math: For every $1 of XRP, a bank must hold **$12.50 in capital**.

· Makes holding XRP on a balance sheet financially irrational.

The Inflection Point:

As legal clarity grows,XRP could be reclassified to a lower-risk category (Type 2B).

· Risk weight drops dramatically.

· Banks could then hold, custody, and use XRP without capital punishment.

· Liquidity shifts from off-balance-sheet to direct institutional ownership.

The Bottom Line:

Markets will front-runregulatory reclassification, not hype. When capital rules flip, trillions in institutional demand could switch on overnight.

This is a game of compliance math, not speculation.#BTCVSGOLD

#XRP #Ripple #BaselIII #Banking #CryptoRegulation