🚨THIS is why banks couldn’t hold $XRP — and why that may be about to change.
Under Basel III, XRP is classified as Type 2 crypto exposure, carrying a punitive 1250% risk weight.
Translation for Wall Street: 👉 For every $1 of XRP, a bank must reserve $12.50 in capital.
That’s not caution.
That’s capital suicide.
This alone explains years of institutional hesitation —
not tech, not demand, not liquidity — capital rules.
🚨 Here’s the inflection point markets are missing:
As legal and regulatory clarity advances, XRP has a credible pathway toward reclassification into a lower-risk category (Type 2B / qualifying exposure).
If that happens, the math changes overnight.
• XRP becomes balance-sheet holdable
• Banks can custody, deploy, and settle with XRP without capital punishment
• Liquidity shifts from off-balance-sheet usage to direct institutional ownership
This is not about price hype.
This is about Basel capital mechanics — the same mechanics that decide whether trillions move or stay sidelined.
The endgame?
$XRP on a path toward Tier-1 institutional relevance.
Markets don’t front-run narratives.
They front-run regulatory reclassification.
And when capital rules flip —
demand doesn’t trickle in. It switches on. ⚡
