THIS IS WHY BANKS COULDN’T HOLD $XRP — UNTIL NOW
Under Basel III, XRP is classified as Type 2 crypto exposure, which carries a brutal 1250% risk weight.
In plain terms for institutions: 👉 Holding XRP on a bank balance sheet has been economically irrational.
For every $1 of XRP, a bank must lock up $12.50 in capital.
That single rule explains years of institutional hesitation.
Not lack of demand.
Not the technology.
Capital rules.
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⚠️ What the market is overlooking
As legal clarity and regulatory frameworks evolve, $XRP has a realistic path toward reclassification into a lower-risk category (Type 2B / qualifying exposure).
If that happens, the equation changes overnight.
✔ XRP becomes balance-sheet viable
✔ Banks can custody, deploy, and settle with XRP without capital penalties
✔ Liquidity shifts from indirect usage to direct institutional ownership
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This isn’t a price narrative.
This is Basel capital mechanics — the same rules that decide whether trillions move or stay frozen.
🎯 The endgame
$XRP is positioning itself to become a Tier-1 digital asset for global financial institutions.
Markets don’t front-run hype.
They front-run regulatory reclassification.
And when capital rules flip, demand doesn’t drip in — it switches on instantly.
That’s the setup most people aren’t modeling.
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