Ripple’s Regulatory Wins & XRP ETF Boom Amid Token Decline

Ripple’s corporate strategy received a substantial endorsement with conditional approval from the US Office of the Comptroller of the Currency (OCC) to charter Ripple National Trust Bank. CEO Brad Garlinghouse described this as “a massive step forward,” positioning Ripple alongside other crypto-native firms like Circle, BitGo, Paxos, and Fidelity that hold similar licenses. This move is a critical step in bridging digital asset services with the traditional financial system. Concurrently, Ripple advanced its global payments network through a partnership with Swiss-based AMINA Bank. This deal will leverage Ripple Payments to facilitate near real-time cross-border settlements for the bank’s clients, strengthening the company’s foothold in the European market.

The launch of the first spot XRP ETF in the United States by Canary Capital in mid-November marked a pivotal moment for institutional access to the asset. The product’s successful debut was quickly followed by similar filings and launches from major asset managers including Bitwise, Grayscale, Franklin Templeton, and 21Shares. Data from analytics firm SoSoValue reveals the powerful investor response: cumulative total net inflows into these XRP ETFs have reached $1 billion. The momentum shows no signs of slowing, with other prominent firms like WisdomTree and CoinShares having filed to launch their own spot XRP ETFs. Industry observers suggest WisdomTree’s product could be next in line for regulatory approval, indicating a rapidly maturing market for XRP-based investment vehicles.

Ripple’s dollar-pegged stablecoin, RLUSD, is achieving significant regulatory and technical milestones. In the Middle East, the token received formal recognition from the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Center (DIFC) and was classified as an accepted fiat-referenced token by Abu Dhabi’s Financial Services Regulatory Authority (FSRA). These approvals provide a regulated on-ramp for digital asset activity in key financial hubs. Technologically, Ripple is preparing to test RLUSD on Layer-2 networks like Optimism and Base. Jack McDonald, SVP of Stablecoin at Ripple, framed this expansion as foundational, stating, “Stablecoins are the gateway to DeFi and institutional adoption… By launching RLUSD… we are not just expanding utility; we are setting the definitive standard where compliance and on-chain efficiency converge.” This development propelled RLUSD to become the top-trending story in crypto, according to the analytics platform Santiment.

Despite these corporate and ecosystem advancements, the price of XRP tells a different story. As of the report, XRP trades around $1.93, reflecting a 6% weekly decline amidst a broader market downturn. More concerning for bulls is data from analyst Ali Martinez, which indicates that large investors, or “whales,” have offloaded approximately 1.18 billion XRP tokens over the past month—a sell-off worth nearly $2.3 billion at current prices. This substantial movement by major holders risks spreading panic among smaller investors, potentially triggering further sell-offs. It also raises pointed questions about whether these informed actors are exiting their positions based on undisclosed negative catalysts, casting a shadow over the token’s near-term price outlook even as the underlying company executes on its strategic vision.