🚨 THIS IS WHY XRP HAS BEEN “UNHOLDABLE” FOR BANKS
Under Basel III, XRP currently sits in Type 2 crypto exposure, carrying a punitive 1250% risk weight.
Translation for Wall Street:
👉 Holding #XRP on a bank balance sheet is capital-inefficient to the point of being irrational.
For every $1 of XRP exposure, a bank must effectively reserve $12.50 in capital.
That alone explains years of institutional hesitation… not demand, not technology, but regulatory capital treatment.
‼️ Here’s the inflection point markets are missing:
As legal and regulatory clarity advances, XRP has a credible pathway to being reclassified toward a lower-risk category (Type 2B / qualifying exposure) materially reducing or eliminating that punitive risk weight.
If that happens, the math changes overnight.
• XRP becomes balance-sheet holdable
• Banks can custody, deploy, and settle with XRP without capital punishment
• Liquidity provisioning shifts from off-balance-sheet usage to direct institutional ownership
This is not about price speculation.
This is about Basel capital mechanics, the same mechanics that decide whether trillions move or stay sidelined.
The endgame?
XRP is on a clear path to becoming a Tier-1 digital asset for global institutions.
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 aren’t modeling.
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