Why is XRP considered a "good trade" - the price could benefit from the GENIUS Act

Ripple's Token may be one of the most attractive assets in the crypto market. Often overlooked due to a lack of clear applications, it has quietly risen to become the third-largest project by market capitalization, currently at 168 billion USD. Just in the past week, XRP has increased by over 30%, outperforming both Bitcoin (+10%) and Ether (+21%).

What drives this growth? The combination of strong liquidity, a loyal community, and most importantly, the alignment with institutional investment adoption.

When the market rally is driven by the traditional financial sector, XRP has found the right place at the right time.

XRP/USD – 1 day | Source: TradingView## XRP finds a niche market

XRP Ledger (XRPL) is a permissioned blockchain designed for interbank transactions, currently used by some major banks. However, most popular XRPL products do not require holding XRP, which makes its tokenomics questionable.

Currently, several Web3 projects are being developed on XRPL. However, their scale is still not significant compared to leading smart contract platforms like Ethereum or Solana, partly due to XRPL's lack of programming capabilities.

However, the 2025 cycle is not about the hype surrounding Web3. It focuses on the adoption by investment institutions, regulatory clarity, and capital flow. And that is where Ripple (XRP) is in a unique position.

Ripple's Ambition Towards Organizations

On July 1, the Federal Reserve (Fed) approved ISO 20022, the new global standard for financial messaging services. This comes after similar moves by other major global payment networks like SWIFT.

Ripple has adhered to this standard since 2020, when it became the first DLT company to join the ISO 20022 organization. That position may now benefit the project.

Volante Technologies, the Fedwire technology provider, recently confirmed that organizations using its Fedwire-as-a-Service product can choose XRP for payments.

Along with Fedwire and ISO 20022, RippleNet creates a favorable pathway for the use of XRP in practice within regulated financial infrastructures.

Moreover, Ripple is in a good position to benefit from the growth of the stablecoin market. In December 2024, the company launched RLUSD, a USD-pegged stablecoin, and its market capitalization has since surpassed 517 million USD.

To strengthen compliance, on July 2, Ripple Labs CEO Brad Garlinghouse confirmed that the company has applied for a national trust bank charter from the OCC. Previously, Ripple Labs also applied to open a Fed Master account along with Standard Custody, a company that was acquired in February 2024. If approved, this will allow Ripple to hold RLUSD directly with the Fed.

Strategic Interest

The market clearly values Ripple's ambitions. The current daily trading volume of XRP exceeds 11 billion USD, more than double that of Bitcoin when adjusted for market capitalization. The open interest (OI) in the futures market has now reached a record level of 8.1 billion USD, indicating that speculative momentum is still being maintained.

High liquidity and dense trading volume, along with the behavior of XRP, make this token relatively "easy" to trade in the crypto space.

Open interest (OI) on the XRP futures market | Source: CoinGlassHowever, there has been a shift from pure speculation to strategic investment, with some public companies building XRP reserve funds.

Trident and Webus, two companies listed on Nasdaq, have announced plans to allocate 500 million USD and 300 million USD respectively into XRP reserves. Smaller companies like VivoPower and Wellgistics Health, also listed on Nasdaq, have also participated, intending to purchase 121 million USD and 50 million USD XRP respectively.

Although these allocations are still relatively small compared to the 102 billion USD held by Bitcoin companies, they mark an important trend: shaping XRP as a reserve and payment asset.

If these companies go beyond holding and start using XRP for cross-border payment processes, as Webus intends, a real collaboration could emerge.

Yesterday, the NYSE approved the listing of the ProShares Ultra XRP ETF, based on XRP futures contracts. Although it has less impact on prices compared to spot funds, this shows growing interest from institutions. The U.S. Securities and Exchange Commission (SEC) is still considering the approval of spot XRP ETFs.

Meanwhile, Canada has taken a step ahead. On June 18, the XRP spot ETFs of 3iQ (XRPQ and XRPQ.U) started trading on the Toronto Stock Exchange, quickly accumulating over 50 million USD in assets under management (AUM).

Whether the utility of XRP affects its valuation or not, it is clear that Ripple has made a significant impact on the market. The company has complied with regulations and created a type of token that is easily acceptable to institutions, which is something that most crypto projects find difficult to achieve.

XRP may benefit from the GENIUS Act

XRP has surged over 6% in the past 24 hours after the U.S. House of Representatives voted to pass the GENIUS Stablecoin Act and the CLARITY Act. This price increase has brought XRP within about 9% of its ATH as this altcoin continues its strongest rally in months.

Ripple's ecosystem will benefit directly from the passage of the bill. The company has established its stablecoin RLUSD to comply with the proposed rules in the GENIUS Act.

The GENIUS Act creates a federal legal framework for stablecoins, requiring full reserves, regular audits, and issuance licensing through U.S. regulatory agencies.

Ripple has taken steps to meet these requirements. The company has applied for a national trust bank charter and established a master account with the Federal Reserve (Fed).

The company also announced that BNY Mellon is the official custodian for the RLUSD reserves. The assets include U.S. Treasury bills, cash, and money market funds.

If GENIUS is approved, Ripple's RLUSD may qualify to become a federally compliant stablecoin, giving Ripple a pioneering advantage in issuing regulated stablecoins.

This makes XRP more useful as a liquidity bridge between managed assets.

XRP price chart after the House passed the GENIUS Act | Source: CoinGecko## XRP and the growth of RLUSD

XRP plays a core role in Ripple's liquidity products. As the adoption of RLUSD increases, XRP can facilitate real-time foreign exchange swaps and stablecoin conversions.

Ripple has supported stablecoin activities on the XRP Ledger. The GENIUS Act could help boost on-chain transaction volume, driving demand for XRP.

This victory also reduces the influence of the SEC. The GENIUS Act grants oversight authority to the Department of the Treasury and OCC, bypassing the SEC's authority.

The change helps promote the story of XRP as a utility token, rather than a security. The latest price increase of XRP also shows that investors see GENIUS as a turning point for Ripple's regulatory transparency.

In summary, the GENIUS Act promotes Ripple's banking and stablecoin strategy, strengthens the legal foundation of RLUSD, and opens the door for expanded regulation in the United States.

Therefore, XRP is gaining momentum from both legal transparency and increasing on-chain utility. With the vote expected to take place this week, XRP may soon test its ATH level.

Vincent