XRP Could Spike 186x if It Hit the Treasury Bills Market Cap of $5.8T

XRP price could skyrocket by as much as 186x from the current levels if XRP captured the $5.8 trillion market cap of the total U.S. Treasury Bills (T-Bills).

This assessment sprang up within the XRP community following reports of tokenized Treasury bills. Notably, OpenEden, a prominent tokenization platform, disclosed that it has introduced tokenized Treasury Bills on the XRP Ledger (XRPL), with Ripple committing an investment of $10 million.

Treasury Bills on the XRPL

For those unfamiliar, Treasury Bills are short-term government securities that mature in one year or less. They are issued by the U.S. government to raise funds for short-term needs and manage national debt. 

Notably, the government typically sells them to investors at a discount to their face value. The difference between the purchase price and the amount the government pays when they mature represents the investor’s earnings. T-Bills are available to individual investors, financial institutions, corporations, and foreign governments.

OpenEden’s initiative would allow investors of T-Bills to tokenize their investments and hold them on the XRPL. This would involve converting the ownership of these traditional financial assets into digital tokens that exist on the XRPL blockchain instead of a paper certificate or digital entry in a traditional system.

XRP Price at a $5.8T Market Cap

Remarkably, the total market cap of the existing T-Bills that investors hold is enormous. In the unlikely event that the majority of these investors choose to tokenize their holdings on the XRPL, this would massively impact the price of XRP, being the gas token for the ledger.

XRP Captain, an XRP community figure, recently sought to assess this impact. He erroneously concluded that the T-Bills in existence boast a market cap of $27 trillion. Citing this figure, the community commentator found that XRP could skyrocket to $482 if it reached this market valuation.

However, the $27 trillion figure actually represents the entire outstanding U.S. treasury securities as of two months ago, according to Statista. Of this figure, $5.866 trillion represents the total value of outstanding T-Bills. Treasury Notes, which last for longer periods than Bills, account for $14 trillion.

Notably, despite the reduced figure, should a sizable chunk of the $5.866 trillion market cap of government T-Bills get tokenized on the XRPL, the impact could be tremendous. Highlighting XRP Captain’s theory, an increase in XRP’s market cap to $5.866 trillion would result in an XRP price of $104.7 at a circulating supply of 56 billion tokens.

This price would mark a massive 186x increase from XRP’s current value of $0.5605. Nonetheless, this assessment remains highly speculative. For instance, while the tokenization of T-Bills on the XRPL is sure to boost XRP’s value in the long term, the extent of such impact remains unknown.