Ripple CTO: XRP has quietly become the secret weapon for the banking industry's "trillion-dollar settlement system".

According to Ripple's Chief Technology Officer, many banks have begun adopting Ripple (XRP) for payments. Even more astonishing is that a bank planning to collaborate with Ripple will operate entirely on the XRP ledger. This significant news reveals the increasingly crucial role of XRP in the global financial system, which could fundamentally change the way the multi-trillion dollar banking industry operates.

Banking giants are adopting XRP technology

This statement was made as Ripple seeks to obtain a New York banking license and a Federal Reserve master account, and it stated that it will comply with the ISO 20022 messaging standard used by major banks. Reports indicate that these measures are aimed at making the token available for large-scale settlement work, providing a more efficient infrastructure for global banking.

Strategic Cooperation between DBS Bank and Franklin Templeton

(Source: X)

According to reports, DBS Bank and Franklin Templeton signed a memorandum of understanding last week to collaborate on the development of tokenized trading and lending products. Franklin Templeton's USD money market fund token sgBENJI is set to go live on DBS Digital Exchange.

Ripple's RLUSD stablecoin is being used to support trading activities, with reports indicating its value is close to $730 million. DBS Bank is also exploring the acceptance of sgBENJI as collateral for repurchase agreements, which will enhance the liquidity of tokenized assets. Lim Wee Kian of DBS Bank stated that this move is a step towards providing institutional-grade digital asset services.

Technical Advantages of the XRP Ecosystem

Nigel Khakoo from Ripple stated that the system makes it easier to seamlessly transfer between stablecoins and yield-bearing tokens within a single setup. Franklin Templeton indicated that the choice of the XRP ledger was due to considerations of cost and speed, while also taking into account its role in the tokenization of securities.

The report also pointed out that Bank of New York Mellon is the reserve custodian supporting RLUSD, highlighting the institutional perspective promoted by Ripple and its efforts in establishing a reliable financial infrastructure.

Changes in Regulatory Environment and Institutional Adoption

After a long struggle between Ripple and the U.S. Securities and Exchange Commission (SEC), changes in U.S. laws and regulations have occurred, bringing momentum to this coin. Reports indicate that there are currently over 20 XRP spot ETFs under consideration, which could attract significant institutional capital into the market.

The Custodian Trust and Clearing Company (DSC) handles up to $4 trillion in settlement business annually. The company mentioned tokenization in its planning documents, and researchers pointed out that if tokenized settlement channels are widely adopted, they could change backend processes and bring unprecedented efficiency to the global financial system.

Bank Adoption Process and Market Outlook

It is said that the banks' actions are progressing slowly but steadily. Early integration testing and compliance checks are still ongoing. Industry insiders indicate that if real-world tokenization proves reliable, the combination of custodial arrangements, stablecoins, and ledger-based settlements could unlock trillions of dollars in capital flows. However, these sources also warn that large-scale adoption requires time and careful risk management.

XRP Price Prediction and Market Reaction

On September 22, the trading price of XRP was about $2.95. Since the price of the token rose nearly 600% from November 2024 to January 2025, market discussions have continued to heat up.

Some analysts predict the price will rise to $50, while others, such as Eduardo Farina from Alpha Lion Academy, predict the price will rise to $100. A small number of commentators believe the target price is $1,000. There are even a small handful who claim that $10,000 is possible.

A community commentator named Xena stated that she believes it will "undoubtedly" reach this level, a comment that highlights people's optimistic attitude towards technological and regulatory advancements.

As banking giants increasingly adopt XRP technology and institutional investors continue their focus, XRP appears to be transforming from a controversial crypto asset into a core component of global financial infrastructure.