XRP, the cryptocurrency issued by Ripple, has garnered attention for its aim to transform cross-border payments. Last year brought significant developments for XRP investors, particularly following Ripple’s settlement of its lawsuit with the Securities and Exchange Commission (SEC). The resolution was reached for $125 million, a fraction of the $2 billion initially sought by the SEC. Additionally, the SEC granted approval for the first spot XRP exchange-traded funds (ETFs) in November, presenting a new avenue for investment.
Despite these positive announcements, XRP’s price faced challenges as the year progressed. After a promising start, it ultimately concluded the year down 9%, wiping out previous gains. However, there is optimism about XRP’s long-term potential, especially as it pertains to its function as a cross-border payments solution. This raises the question for many investors: Could XRP be a path to significant wealth?
Since its inception in 2012, XRP has been positioned as a fast and cost-effective method for financial institutions to transfer funds through the XRP Ledger (XRPL), a decentralized blockchain network. The ledger facilitates transaction settlements in just three to five seconds and incurs fees that are significantly lower than those of traditional systems, like Bitcoin. Ripple’s global payments network enables partnerships with over 300 banks across six continents, with ambitions to capture market share from SWIFT, the predominant system for international money transfers.
Ripple CEO Brad Garlinghouse stated in June 2025 that the XRPL has the potential to capture 14% of SWIFT’s international payment volume within the next five years. Given SWIFT’s current levels, this equates to an ambitious target of $21 trillion.
XRP serves a dual purpose within this framework: it not only pays transaction fees but also provides on-demand liquidity for Ripple’s banking partners. This means that financial institutions can convert cross-border transfers into XRP, negating the need for holding prefunded accounts in various currencies. If demand for the XRPL and Ripple’s liquidity services grows, so too would the necessity for XRP.
Nevertheless, XRP’s future faces hurdles, especially as Ripple expands its offerings beyond the cryptocurrency. Notably, Ripple’s acquisition of brokerage firm Hidden Road last October, which was renamed Ripple Prime, signals its intention to broaden its role in financial services. Furthermore, Ripple received conditional approval from the U.S. Office of the Comptroller of the Currency to establish a federally chartered trust bank, and it launched Ripple USD, a stablecoin designed for quick transactions like XRP but stabilizing its value.
This diversification raises questions about XRP’s relevance, as many banking partners may not utilize the cryptocurrency if they can achieve similar results using fiat currencies through Ripple’s technology without relying on XRP. While Ripple appears to be evolving successfully, XRP’s future as an investment vehicle is less certain. Speculations surrounding an initial public offering (IPO) by Ripple could further complicate the landscape for XRP investors.
For those contemplating if XRP could yield millionaire-status returns, the numbers suggest caution. To realize a 100-fold return on a $10,000 investment, XRP would need to reach a market cap of $11.5 trillion—a daunting prospect when considering its current valuation of $115 billion. While the global payments market is estimated to grow from $190 trillion in 2023 to $290 trillion by 2030, making XRP a compelling option in cross-border transactions, the path to extreme returns may be unrealistic.
Potential investors might consider maintaining a modest position in XRP, recognizing it as a high-risk and high-reward opportunity. However, it’s prudent to refrain from setting excessive expectations; while XRP has previously outperformed the market, those seeking quick riches may need to temper their dreams.
