Here’s the Price of 1 XRP if Every Major Bank Uses It for Cross-Border Payments

Amid continued discussions around the utility XRP boasts in payments, what could its price grow to if every major bank uses it globally for cross-border payments?

XRP’s Appeal in Global Payments

Ripple points to its growing role in global payments, especially through Ripple’s On-Demand Liquidity (ODL) platform, now rebranded into Ripple Payments.

For context, ODL allows banks to use XRP as a bridge currency. It allows them to settle cross-border payments without pre-funding accounts in destination currencies. This setup lowers transaction costs, speeds up settlements, and improves transparency.

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Also, Ripple’s legal battle with the SEC reached a turning point in 2023 when XRP secured regulatory clarity in the U.S. That win boosted institutional confidence, especially among banks looking to leverage XRP within the American market. 

However, as the case lingers, these institutions remain cautious. With the case now nearly over, speculation has grown about XRP’s role in the future of banking. Some now believe that global banks could use XRP to handle cross-border payments. 

Nonetheless, it remains unclear how this could impact the XRP price. As a result, in response to the growing curiosity, we asked OpenAI’s ChatGPT to highlight what XRP’s price could look like in the most optimistic scenario, translating to full adoption by major banks worldwide.

Price of 1 XRP if Every Bank Adopts It for Cross-Border Payments

ChatGPT discussed several very bullish models, each based on a different approach to value. In one of the most aggressive estimates, it imagined XRP capturing 10% of the $150 trillion that SWIFT processes every year. 

Using a velocity of three, meaning each XRP gets used three times annually, it calculated that the system would need $5 trillion worth of XRP to function. Now, with a circulating supply of 60 billion tokens, that would push XRP’s price to roughly $83.33.

Meanwhile, another model looked at the total cross-border payments market, which includes corporate payments, retail flows, and remittances. The market adds up to about $200 trillion each year. If XRP handles just 5% of that volume and turns over five times annually, it would need $2 trillion in active supply. Such a setup would support a price of $33.33 per XRP.

However, ChatGPT presented a more conservative estimate, focusing on bank reserves rather than transaction flows. Notably, it assumed that 1,000 top global banks each held $500 million worth of XRP to meet their liquidity needs. 

This level of adoption would add up to $500 billion in holdings. Considering the circulating supply of 60 billion tokens, XRP’s price in this case would land at around $8.33.

Overall, ChatGPT stressed that XRP’s velocity is an important factor to consider regarding its pricing. Notably, the faster it moves between hands, the less supply the system needs to hold at any given time, which reduces upward pressure on price. 

Still, if banks adopt XRP on a wide scale, price projections across all models show meaningful upside. If XRP becomes the go-to tool for international settlements, its price could jump anywhere from $8 to over $80.