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XRP offers fast, low-cost, and scalable transactions, making it an ideal candidate for future financial infrastructure.
Regulatory clarity is the biggest barrier preventing XRP from being considered as part of the US crypto reserve.
Ripple’s partnerships with global banks and governments strengthen the argument for XRP’s inclusion in a multi-crypto reserve basket in the future.
Cryptocurrency adoption is growing institutionally, with the US at the helm of it all in 2025. As Trump announces pro-crypto policies, a question arises: Can XRP, the native token of Ripple Labs, become a part of the United States' crypto reserve strategy?
While the idea may sound speculative, XRP's speed, scalability, and utility make it a noteworthy candidate in discussions about digital reserve assets. With rising global interest in Central Bank Digital Currencies (CBDCs) and blockchain-backed financial infrastructure, XRP has found itself in the spotlight.
A crypto reserve refers to a stockpile of digital assets held by governments or institutions as a hedge, similar to gold or foreign currency reserves. The idea of a crypto reserve is still in its infancy. Still, with Bitcoin already being considered digital gold and Ethereum powering smart contracts, some experts believe a diversified basket of crypto assets could serve as a financial backstop in a future digital economy.
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XRP is a decentralized digital asset created to facilitate fast, low-cost cross-border payments. Unlike Bitcoin, which is proof-of-work based, XRP transactions are validated by a consensus protocol, making it more energy-efficient and faster. XRP can settle transactions in just 3–5 seconds and handle up to 1,500 transactions per second. It’s these qualities that make it attractive to financial institutions and central banks seeking efficiency and liquidity.
Ripple, the company behind XRP, has partnered with over 100 financial institutions globally. Its XRP Ledger technology has been considered for integration into real-time settlement systems, which adds credibility to its use case. These factors could make XRP an attractive option if the US were to consider digital assets in its reserve strategy.
XRP price was $3.02 at the time of writing. The following XRP chart on CoinMarketCap shows a loss of 3.08% over the last 24 hours amid ongoing market volatility:
However, XRP’s path to being part of any national reserve faces significant obstacles, chief among them, regulatory clarity. The US Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, which began in 2020, questioned whether XRP is a security. While a partial court ruling in 2023 declared that XRP is not a security when traded on exchanges, full legal clarity is still pending.
Without a clear regulatory framework, the US government is unlikely to include any cryptocurrency in its official reserves, let alone one still facing legal scrutiny. Stability, transparency, and predictability are essential for reserve assets, and XRP must first overcome this legal uncertainty.
Rather than replacing the US dollar or Bitcoin, XRP could potentially be part of a broader basket of cryptocurrencies in the future. Similar to the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs), a digital equivalent could be created using a diversified set of assets, including Bitcoin, Ethereum, and XRP. This kind of approach could help mitigate the volatility associated with a single crypto asset.
Ripple has already expressed interest in CBDCs and digital financial infrastructure. In fact, several countries have engaged Ripple for consultations on launching their CBDCs. This suggests that XRP's underlying technology is gaining institutional trust, a vital step toward reserve consideration.
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Will XRP ever be part of the US crypto reserve? Theoretically, yes, practically, not yet. XRP has good fundamentals, and we have seen its utility happen in these finance networks.
To make XRP a part of official reserves would also include complete regulatory clarity surrounding digital assets, a change in the US monetary policy, and widespread acceptance of crypto-assets as a sovereign asset class by the finance community.
If the US acknowledges or considers diversified crypto reserves for the next decades, there is no reason XRP could not be included in it, especially since Ripple Labs continues to build global partnerships and the stability of the XRP Ledger is proven. For now, though, it is an interesting and speculative thought during this digital finance evolution.
1. What is a crypto reserve, and how could the US use one?
A crypto reserve is a pool of digital assets held by a country to support its financial system. The US could use it for faster cross-border payments, inflation protection, or economic diversification. It would require regulatory clarity and secure infrastructure before implementation.
2. Why is XRP being considered for a potential reserve role?
XRP offers fast, low-cost international payments. Its global financial use cases and Ripple’s ties with institutions make it appealing. Its efficiency and practical design add to its suitability for reserve status, pending regulatory approval.
3. What legal issues might block XRP’s inclusion in a US crypto reserve?
The biggest obstacle is the ongoing legal uncertainty surrounding XRP’s regulatory status. The US SEC previously claimed XRP was a security, triggering a lawsuit against Ripple. While there has been partial clarity with court rulings, full legal resolution has not yet been achieved.
4. Are other countries using XRP in their national reserves?
No country officially holds XRP as part of a sovereign reserve, but Ripple is actively engaged with several governments. For example, Bhutan is using Ripple’s CBDC technology for cross-border payments, and Palau has launched a USD-backed stablecoin pilot with Ripple.
5. Can XRP coexist with Bitcoin and Ethereum in a US reserve system?
Yes, XRP could function alongside Bitcoin and Ethereum, each serving a unique purpose. Bitcoin might serve as a decentralized store of value, Ethereum could support programmable financial services, and XRP would handle rapid cross-border transactions.
