Here is the price of XRP if nine global banks buy XRP at only 0.5% of their assets, the digital currency XRP may witness an increase
Here is the price of XRP if nine global banks buy XRP at only 0.5% of their assets
The digital currency XRP may witness a huge price increase due to supply shortages if nine of the largest global banks invest only 0.5% of their total assets
Institutional adoption of the digital currency XRP
Note that discussions around the potential adoption of XRP by the banking system have gained momentum amid positive regulatory changes. For example, recent changes in the leadership of the U.S. Securities and Exchange Commission have raised expectations for an imminent settlement in the Ripple case against the agency.
This could remove all regulatory barriers for XRP, leading to greater institutional adoption. During these discussions, market analyst Steve pointed out that if some of the largest banks in the world adopt XRP, the impact on its price would be significant.
Large financial flows into XRP
Data from CompaniesMarketCap.com shows the enormous assets held by these financial institutions. In particular, the China Construction Bank controls $5.837 trillion, while the Bank of China has $4.859 trillion. At the same time, J.P. Morgan has $4.210 trillion, and Bank of America holds $3.324 trillion. HSBC's total assets amount to $3.098 trillion, Wells Fargo's assets are $1.922 trillion, Citigroup has $2.430 trillion, Banco Santander has $2.013 trillion, and Barclays has $2.049 trillion. Collectively, these banks control $29.74 trillion in assets.
If each of these banks allocated only 0.5% of their assets to buy XRP, the capital injection would exceed $148.7 billion. At the current XRP price of $2.3, this would lead to substantial holdings.
The China Construction Bank alone can purchase 12.69 billion XRP.
The Bank of China will receive 10.56 billion XRP.
J.P. Morgan's distribution will be 9.15 billion XRP.
Bank of America will receive 7.23 billion XRP.
HSBC will own 6.73 billion XRP.
Wells Fargo, Citigroup, Banco Santander, and Barclays will receive 4.18 billion, 5.28 billion, 4.38 billion, and 4.45 billion XRP, respectively.
In total, these banks will gather 64.66 billion XRP, representing about 65% of the liquid supply.
Ripple's impact on XRP price
Since the total supply of XRP is 100 billion, removing 64.66 billion XRP from the market could create a severe supply shortage. It is expected that a purchase of this size will increase prices. However, the extent of this price increase remains uncertain, so Ripple sought insights from ChatGPT.
The AI chatbot first used the market capitalization formula to estimate the impact of this potential capital inflow. Since the purchase will inject $148.7 billion into XRP, its market value will more than double.
If prices follow this increase naturally, ChatGPT estimates that XRP could reach $4.6. However, this estimate assumes that the market responds in a linear way. In reality, several factors could push the price even higher. The chatbot indicated that the supply shortage, along with increasing demand, could significantly raise the value of XRP to beyond $10. It also predicted that the value of XRP could reach $20 or even $50, depending on how the market responds$XRP
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