Here’s Impact on XRP Price If Corporate Treasuries Use It for FX Hedging

What could be the impact on XRP price if corporate treasuries decide to use XRP for foreign exchange (FX) hedging?

Notably, managing foreign exchange (FX) risk has become an important part of corporate treasury management. For the uninitiated, companies with international operations use FX hedging to protect their profits from currency swings.

FX Hedging Trends

According to Milltech, recent data from 2024 to 2025 shows that about 86% of European firms and 82% of North American firms hedge their FX exposure, with the global hedge ratio averaging 48%. 

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Specifically, major corporations in the FTSE 350 and large U.S. firms have made the most effort in this regard with full-scale programs. In contrast, those who skipped hedging ended up taking losses in nearly 75% of cases in 2024.

Notably, treasurers mainly rely on forward contracts, which make up around 60 to 70% of hedging programs. Meanwhile, options and swaps account for 15 to 20% and 10 to 15% respectively. However, natural hedging covers another 20 to 40% of exposures. 

Despite the widespread use of these tools, many firms still face challenges such as high costs, complex analytics, and new risks around emerging market currencies. 

Could Corporate Treasuries Adopt XRP for FX Hedging?

This has contributed to hesitation from some treasuries. Globally, hedgeable U.S. dollar assets total about $33 trillion, according to Reuters. However, a large portion of that figure remains unhedged. Notably, expert projections suggest that total global corporate flows could grow exponentially in the future.

Amid these trends, treasury professionals have begun exploring new ways to handle FX exposure, including the potential use of crypto assets such as XRP. 

In theory, to implement this, companies could hold 5–10% of their surplus cash in XRP and use RippleNet or the XRP Ledger for cross-border payments. These transactions settle in three to five seconds, cost just fractions of a cent and could reduce both FX delays and payment costs. 

Also, they could convert foreign receivables into XRP, move them instantly, and then exchange them for another currency, limiting exposure to just seconds instead of days.

However, this approach is still experimental. XRP’s volatility, which ranges between 50% and 100% a year, is much higher than the 5–15% typical of major fiat currencies. As a result, XRP currently fits better as a payment and liquidity tool than as a direct hedging instrument. 

XRP Price if This Happens

Nonetheless, should any treasury decide to adopt XRP for this purpose, how this might affect XRP’s market price remains uncertain. So, we asked the AI chatbot Google Gemini for its view. 

According to Gemini, if treasuries began using XRP for even part of the projected $200 billion in annual FX hedging flows, XRP’s market cap could grow from about $153.7 billion to roughly $1.5 trillion. Notably, this would lift the token’s price to around $25, based on its 59.91 billion circulating supply.

Interestingly, Gemini added that if institutional demand surged alongside retail speculation, supply tightened, and spot XRP ETFs gained approval, the price could go even higher. In such an extreme case, XRP could trade between $90 and $120, pushing its market value into the $5.4 to $7.2 trillion range.