XRP is currently trading close to the $2.00 mark, despite Ripple Labs recently obtaining conditional approval for a national trust bank charter from the Office of the Comptroller of the Currency (OCC). This approval, granted on December 12, represents a notable regulatory achievement for Ripple, a company focused on cryptocurrency payment solutions.
Despite this positive news, XRP has experienced a decline of approximately 40% from its highs in 2025, underperforming compared to Bitcoin and Ethereum, which have both fared better during the same period. Even in light of Ripple’s advancements, the price of XRP has not reflected this optimism, leading many to question the market dynamics at play.
In a significant development, Ripple has been authorized to establish the Ripple National Trust Bank, which will operate under federal banking supervision. This charter will enable the company to offer cryptocurrency custody services and manage reserves that back its RLUSD stablecoin, which boasts a market capitalization of about $1.3 billion. However, some industry leaders, like Greg Baer, CEO of the Bank Policy Institute, have raised concerns regarding whether the OCC’s guidelines adequately mitigate operational risks, signaling traditional banking resistance to crypto-centric charters.
The approval enhances RLUSD’s status by placing it under both federal and New York state regulatory oversight, thereby adding layers of compliance to its operations. Meanwhile, XRP exchange-traded funds have notably attracted nearly $1 billion in assets since their launch in November, with inflows totaling approximately $971 million—surpassing the pace of Solana’s ETFs, despite XRP’s ongoing price struggles.
Ripple’s efforts to expand its institutional presence gained momentum in November when the company secured a staggering $500 million funding round from major players like Fortress Investment Group and Citadel Securities, elevating Ripple to a $40 billion valuation. This was further reinforced by participation from other major financial firms, including Pantera Capital and Galaxy Digital.
Cross-chain initiatives continued to unfold as Hex Trust launched wrapped XRP on platforms like Solana and Ethereum, supported by initial liquidity of over $100 million. This allows XRP to engage with decentralized finance applications across multiple blockchains. Additionally, RLUSD received approval for institutional use in Abu Dhabi, marking an advancement in its global regulatory footprint.
However, the disconnect between these positive developments and XRP’s price movement highlights ongoing pressures within the broader cryptocurrency market, particularly following recent Federal Reserve rate decisions. Technical analysis indicates that XRP is trading below critical moving averages, showing weak momentum and allowing bearish trends to dominate the near-term landscape. The $2.00 mark has become crucial psychological support, with analysts eyeing $1.98 as a potential next support level if current trends continue.
Resistance levels between $2.06 and $2.13 have repeatedly thwarted efforts for a price rally. Ripple’s acquisition of a banking charter aims to respond to long-standing institutional concerns over crypto custodial services operating outside regulatory frameworks. This could enhance RLUSD’s adoption among banks and payment processors looking for compliant settlement options for stablecoins.
Yet, the market seems to be more focused on price technicalities rather than the promising fundamental developments. Despite Ripple’s impressive processing volume of over $95 billion in transactions and the expansion of its regulatory licenses to 75 jurisdictions, XRP’s performance has remained lackluster compared to Bitcoin and Ethereum. This discrepancy raises essential questions about XRP’s ability to capitalize on its network growth and the mechanisms in place for value capture.
With institutional investors increasingly engaging through ETF offerings, new price dynamics are emerging that could differentiate the market environment from the historically retail-driven trading patterns that have characterized XRP’s past.
