As we approach the end of 2025’s first half, Ripple’s XRP is being adopted by financial institutions, banks and remittance companies. It comes about because of better technology and the increasing need to make cross-border payments easier.
A key reason Wall Street is paying attention is the very low charges when trading. Even if the network gets busy, sending XRP only costs $0.00002. Brett, who is an XRP supporter and Bitrue ambassador on X, explained, “No gas wars. No surge pricing. Just clean, predictable costs.” Suppose every XRP was worth $1,000, the cost of the fee would still remain as low as 0.00001 XRP.
Also, XRP isn’t supported by mining or the reward system used for Bitcoin or Ethereum. The XRP Ledger maintains a light network by using a consensus protocol instead of the expensive, incentive-filled proof-of-work system, as highlighted in our previous story. “No Mining. No Validator Rewards. No Incentive Games,” Brett pointed out. He noted that this system is based on an inexpensive and efficient system design.
Moreover, how quickly the data can be processed plays an important role. Transactions processed on the XRP Ledger (XRPL) don’t take longer than three seconds. There’s no need to confirm your transaction several times and the competition between blocks doesn’t slow down this type of crypto. Thus, financial institutions see speedy settlements with XRP also becoming a preferred choice to power the BRICS’ gold-backed system.
XRP is designed to reduce its supply over time. When a transaction is made, 0.00001 XRP is reduced from the total circulation. In addition, it blocks spammers and eventually makes the token in shorter supply. In other words, Brett explained that efficiency and deflation add up to continuing growth.
Handling large transactions is no problem for XRP. It can handle up to 1,500 transactions per second (TPS) without slowing down. Despite high demand, the time it takes for a transaction and associated fees doesn’t change.
Institutions are also interested in the removal of pre-funded accounts from the employee pension scheme. Users of traditional cross-border payments are required to pre-fund their accounts with money. With Ripple’s technology, transferring money internationally takes less time and doesn’t require keeping capital tied up.
About it, Brett said, “No one wants to pay $30 to send $30.” Many institutions prefer this idea since practical and low-cost options are more interesting than purely speculative assets.
The U.S. Securities and Exchange Commission (SEC) decision on Franklin Templeton’s spot XRP ETF is due on June 17, 2025, about a month away. The XRP supporters are optimistic on an approval owing to the change in SEC’s leadership with pro-crypto Paul Atkins taking over as the Chairman. However, analysts like James Seyffart expect a further delay in decision with the final deadline around October 2025 for such ETFs.
Nonetheless, the XRP ETF approval odds in 2025 stand at 83%, according to Polymarket. Whilst, owing to strong fundamentals, Standard Chartered has predicted an inflow of $4-8 billion for XRP ETFs in the first year after launch. Most of it is expected to come via institutional investors, reinforcing the narrative that Brett discussed.
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