A new proposal by Maximilian Staudinger suggests using XRP
to unlock $1.5 trillion trapped in US banks’ Nostro accounts. Nostro accounts
hold pre-funded money to facilitate cross-border payments. Globally, these
accounts contain about $27 trillion, with $5 trillion linked to American banks.
Meanwhile, the XRPUSD H1 chart shows the price is currently
near a level where it faced resistance twice. If this level continues to act as
resistance, intraday sellers could push the price lower.
Proposal for XRP in Financial Transactions
Staudinger’s proposal outlines XRP’s role in reducing
capital constraints in banking. He suggests that replacing traditional Nostro
accounts with XRP settlements would free up liquidity. This would allow the
government to redirect funds toward a national cryptocurrency reserve, Coinfomania
reported.
This is the guy that wrote the comprehensive proposal: xrp as a strategic asset for the US!Maximilian Staudinger pic.twitter.com/TdyVX66dSe
— Danny Vandermeer (@DannyVandermeer) March 13, 2025
He proposes that Bitcoin be the primary reserve asset, with
Solana and Cardano playing secondary roles. However, he maintains that XRP
should be the primary tool for processing transactions due to its speed and
cost-effectiveness.
He also suggests that XRP could be integrated into US
government financial systems. This includes processing payments such as Social
Security and tax refunds. According to Staudinger, using XRP could accelerate
these transactions and lower associated costs.
Regulatory Challenges and Implementation Plans
Staudinger’s proposal faces regulatory challenges, as the
US Securities and Exchange Commission has not provided a clear
classification for XRP. Without this clarity, its use in government and banking
remains uncertain. Staudinger has called for the SEC to designate XRP as a
payment asset to support broader adoption.
The proposal suggests two possible implementation
strategies: a standard 24-month rollout requiring regulatory approvals and bank
integration or a faster approach within 6 to 12 months, relying on executive
orders and Federal Reserve involvement. While legal and regulatory barriers
remain, the proposal has prompted discussions on digital assets in government
financial systems.
Ripple Expands with New Partnerships, Custody Solutions,
and Strategic Moves
Michael Saylor, Executive Chairman of Strategy, recently
discussed cryptocurrencies’ role in US strategic reserves. This follows an
executive order by President Trump, listing Bitcoin and altcoins like Ethereum,
XRP, Solana, and Cardano. In a Fox Business interview, Saylor addressed digital
asset regulation and suggested XRP should be issued under a regulatory framework.
BREAKING: 🇺🇸 MICHAEL SAYLOR DISCUSSES U.S. CRYPTO RESERVE – INCLUDING $BTC, $ETH, $XRP, $SOL & $ADA! “XRP is attached to a company @Ripple.” Stated The Fox Reporter “ I think those are tokens and we should have a regulatory framework that allows those to be issued” – @saylor… pic.twitter.com/jc0DeuCjKO
— Good Morning Crypto (@AbsGMCrypto) March 5, 2025
Ripple attracted attention when CEO
Garlinghouse and CLO Alderoty met President-elect Trump on January 6, fuelling
speculation about the SEC’s lawsuit, filed in December 2020, claiming Ripple
sold XRP as unregistered securities.
Ripple also partnered with Revolut
and Zero Hash to expand RLUSD access, positioning it against USDT and USDC.
In Portugal, Ripple
works with Unicâmbio to enable instant payments between Portugal and Brazil
using digital assets.
South Korea’s BDACS
will use Ripple Custody to secure XRP and RLUSD, a stablecoin pegged to the
dollar. The partnership aims to provide secure storage for institutional
clients.
Ripple donated $100,000 in XRP to aid California wildfire
victims, supporting organizations like World Central Kitchen and GiveDirectly
via The Giving Block.
🔥 $XRP News: Ripple Whales Buy 520M $XRP Amid Recent Dip, What’s Next❓👀https://t.co/5H2QvrqWe2
— Crypto News (CoinGape) (@CoinGapeMedia) February 7, 2025
In Japan, Ripple expects banks to adopt XRP Ledger by 2025
for better cross-border payments. In DeFi, Ripple is working with Chainlink to
integrate RLUSD into Ethereum-based trading and lending applications.
Investor interest in XRP remains strong, with whales
acquiring 520 million tokens during a recent dip. The SEC’s reassignment of
Jorge Tenreiro has raised questions about its future stance on crypto
litigation.
This article was written by Tareq Sikder at www.financemagnates.com.
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