$XRP Most people on crypto Twitter think banks stayed away from XRP because of price action or tech debates.
From my perspective, the real reason has always been regulatory capital rules, not hype.
Under Basel III, XRP currently falls under Type 2 crypto exposure, carrying a massive 1250% risk weight.
Simple Binance-level explanation 👇
For every $1 of XRP a bank holds, it must reserve $12.50 in capital.
That makes holding XRP on a bank balance sheet completely inefficient.
This single rule explains years of institutional hesitation — not weak demand, not slow adoption, but capital punishment by regulation.
‼️ Here’s the part most traders are not modeling:
As legal clarity improves and regulatory frameworks mature, XRP has a clear pathway toward reclassification into a lower-risk category (Type 2B / qualifying exposure).
If that happens, the numbers change instantly.
• XRP becomes balance-sheet friendly
• Banks can custody, deploy, and settle using XRP without excessive capital lockups
• Liquidity moves from indirect usage to direct institutional holding
This isn’t about short-term price speculation on Binance.
This is about Basel capital mechanics — the same rules that decide whether billions or trillions enter the market.
The bigger picture?
XRP is positioning itself to become a Tier-1 digital asset for global financial institutions.
Markets don’t move first on narratives.
They move first on regulatory reclassification.
And when capital rules flip, demand doesn’t slowly build —
it turns on like a switch.
That’s the setup most people are still ignoring.#Xrp🔥🔥
