Ripple Labs and its digital asset, XRP, have experienced significant gains following the Trump administration’s supportive stance on digital assets in 2025. Since November, the price of XRP has surged approximately 600%, prompting speculation about its future trajectory—whether it will continue to rise or eventually stabilize.
A pivotal moment occurred on August 7th when Ripple’s prolonged legal battle with the SEC concluded. Ripple agreed to a $125 million settlement, significantly less than the SEC’s original demand. More crucially, this settlement provided Ripple with regulatory clarity, a vital asset as the company moves forward.
In a notable development, Ripple has made strides toward creating an exchange-traded fund (ETF)—specifically, XRPR—a product launched this year by REX-Share and Osprey Fund. The ETF has gained attention for its unique structure; it utilized the Investment Company Act of 1940, allowing it to bypass the more extensive vetting process required under the Securities Act of 1933. On its first day of trading, the XRPR ETF achieved $37.7 million in volume, exceeding expectations. However, despite this activity, XRP’s price remained largely stable, which analysts believe may be due to investor perceptions of the asset being overbought.
Interestingly, recent reports indicated that XRP whales have sold off approximately 160 million XRP within a two-week period, contributing to price stagnation. Furthermore, many investors seem to be holding out for additional spot ETFs tied to XRP, which are still pending SEC approval. While XRPR is the inaugural XRP ETF, its fees are notably high in comparison to Bitcoin ETFs, and it has unique limitations, such as its inability to hold solely XRP, as part of the fund is managed by a subsidiary in the Cayman Islands.
Ripple Labs has expanded its focus internationally, with about 90% of its operations occurring outside the United States. Following the easing of regulatory challenges, Ripple launched its stablecoin, RLUSD, in late 2024 and previously attempted to acquire Circle for $5 billion. The company is also pursuing a national trust banking charter from the Office of the Controller of the Currency. If granted, Ripple National Trust Bank would govern RLUSD’s issuance and custody, intertwining it further with federal regulations introduced by the GENIUS Act.
Currently, XRP, which serves as a bridge asset for cross-border payments, boasts a market cap around $177 billion, while RLUSD stands at approximately $730 million. Despite Ripple’s alliances with several prominent banks, many institutions leverage RippleNet—Ripple’s enterprise blockchain network—without specifically utilizing XRP.
Concerns linger regarding XRP’s utility; while it offers rapid transaction speeds, its volatility leads many banks to be hesitant in incorporating it into their balance sheets. Smaller institutions may adopt XRP for short-term liquidity needs but are unlikely to retain it long-term. The growing emphasis on stablecoins, alongside Ripple’s strategic acquisition of Rail—a stablecoin payment service—highlights a shift in priorities within the company. Monica Long, President of Ripple, emphasized the significance of stablecoins in modern finance, underlining Rails’ role in advancing innovation.
Going forward, the impending decisions regarding new spot ETF approvals in November could stimulate interest and investment in XRP. However, the market’s ability to maintain any resulting price increase remains uncertain and is subject to broader market conditions and sentiment.
