A seasoned Bitcoin investor, known in the community as Pumpius, has put forth a bold yet plausible argument for the digital asset XRP, envisioning a potential rise to $50. Unlike many cryptocurrency predictions driven by hype, Pumpius asserts that XRP’s ascent will hinge on what he terms a “controlled launch” into the U.S. financial system, fueled by Ripple’s ambition to secure a national banking license.
Ripple has taken significant steps in this direction by applying for a national bank charter with the U.S. Office of the Comptroller of the Currency (OCC). This prestigious license is currently held by major financial players such as JPMorgan, Citibank, and Bank of New York Mellon. If Ripple is granted this charter, it would transition from being perceived as merely a fintech startup to being recognized alongside America’s largest financial institutions. Such a development would fundamentally alter the standing of XRP, transforming it into a core component of Ripple’s banking operations.
The approval process initiated by Ripple began in July, with the OCC traditionally working within a 120-day timeline. This means a potential decision could emerge as early as October, which presents a critical juncture for investors. According to Pumpius, a favorable ruling would not only legitimize Ripple but would also position XRP as a regulated settlement asset integral to the banking infrastructure.
What makes this venture particularly notable is the access the banking license would grant Ripple. With an OCC charter, Ripple would gain direct entry to the Federal Reserve, enabling the company to custody tokenized assets, launch stablecoins, and facilitate securities settlements without relying on intermediaries. In this scenario, XRP would become essential for institutions utilizing Ripple’s services, as it would provide the necessary liquidity across borders and asset classes. This paradigm shift, as articulated by Pumpius, could propel XRP toward the ambitious price point of $50.
He cites staggering figures in the context of global bank settlements, which average around $6.6 trillion daily. Even capturing a small percentage of this market could lead to a substantial increase in XRP’s value. Presently valued at approximately $2.72, Pumpius suggests that if Ripple were to facilitate even a fraction of this liquidity, XRP could experience a remarkable 1,600% increase, pushing its total market capitalization to about $3 trillion—an amount that would surpass Bitcoin’s current valuation, dramatically altering the landscape of the crypto market.
Another factor that plays into this scenario is Ripple’s recent legal resolution regarding its protracted battle with the SEC. Pumpius believes that while this lawsuit presented significant challenges, it ultimately served as a crucial step toward regulatory compliance. The resolution has cleared the way for Ripple to focus on securing the OCC charter, which is now more attainable than ever.
However, Ripple’s journey is not without obstacles. Powerful institutions like the American Bankers Association are lobbying against Ripple’s application, arguing that crypto firms should not receive federal bank charters without public discourse. They express concerns that approving Ripple could allow it to bypass state-level licensing regulations, potentially granting it an unfair advantage. This resistance highlights the potential disruption Ripple could introduce to the traditional banking sector, as fears mount that it could usurp market share from established banks.
Despite these challenges, Pumpius emphasizes that the battle against Ripple underscores the significant opportunity at hand. If Ripple were not a legitimate threat, he contends, traditional banks would not be fighting so fervently against it.
Ultimately, Pumpius envisions XRP’s rise as a “controlled launch” within the established regulatory framework. He asserts that the path forward for Ripple is not reckless speculation but rather strategic integration into the global financial system. If granted the OCC charter, XRP could transcend its current status as just another cryptocurrency, emerging as the essential settlement asset for contemporary banking.
As of now, XRP is trading around $2.7757.
