Here's why banks have struggled to hold $XRP on their balance sheets:

Under current Basel III rules, $XRP falls into Group 2 crypto assets. This comes with a high 1250% risk weight for many holdings—meaning for every $1 of $XRP , a bank must set aside up to $12.50 in capital. No wonder institutions have hesitated; it's just not efficient for their capital.

But here's the key shift many are overlooking:

As regulatory clarity grows (like recent U.S. rulings treating XRP as a non-security in secondary markets), XRP could move toward better treatment. Some liquid assets like XRP already qualify for hedging in Group 2a, which lowers the capital hit significantly.

If clarity pushes it further—making it more "bank-friendly"—the rules could flip fast:

XRP becomes easier to hold and custody directly

Banks can use it for settlements without heavy capital costs

Real institutional ownership and liquidity could surge

This isn't just about hype or price. It's about capital rules that control where trillions flow.

When those rules change, demand doesn't ramp up slowly it turns on like a switch.

That's the real setup for XRP as a go-to digital asset for global banks. Markets price in regulation before anything else. 🚀