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What Does XRP Really Do? Expert Explains What It Is Built For

Crypto analyst and XRP advocate Levi Rietveld just lately shared a brief submit on X stating that “$XRP is constructed for this,” alongside a video clip of US Treasury Secretary Scott Bessent talking about reviewing regulatory limitations round blockchain, stablecoins, and new payment systems just like the crypto business.

Bessent’s feedback targeted on reforming monetary infrastructure so capital markets can perform extra effectively for mainstream customers. In flip, Rietveld seen these feedback as carefully matching the unique objective XRP was created to serve.

What XRP Was Designed To Do

In the video clip that Levi Rietveld shared on X alongside his assertion of XRP being constructed for this, Scott Bessent outlined a coverage route that locations emphasis on evaluating regulatory impediments to blockchain expertise, stablecoins, and new fee techniques. 

Bessent acknowledged that officers will take a detailed take a look at regulatory impediments to blockchain, stablecoins, and new fee techniques and contemplate reforms to unleash the ability of American capital markets. Notably, this plan corresponds to a extra crypto-positive method adopted by the current US administration beneath President Donald Trump. 

These are a part of efforts by the US authorities to modernize crypto regulation and outline clearer frameworks for digital belongings, together with proposed acts geared toward bringing readability to markets and stablecoins. One instance of this is the Clarity Act, a legislative proposal that goals to obviously outline the regulatory remedy of digital belongings, separate payment-focused tokens from securities, and assign clearer oversight roles to companies such because the SEC and CFTC. 

Bessent’s feedback targeted on enhancing fee techniques and eradicating friction round new monetary expertise. XRP proponents like Levi Rietveld would shortly level out that the theme aligns carefully with how the cryptocurrency and the XRP Ledger were engineered. 

The XRP Ledger works with clear settlement, predictable transaction prices, and finality that doesn’t rely on mining or complicated good contract execution. These traits are vital for establishments that want readability and reliability. 

In apply, XRP’s real-world function is most seen by way of fee options developed by Ripple. Banks and other monetary establishments don’t want to carry giant balances of foreign currency, since XRP can be utilized as an intermediate asset throughout settlement. 

XRP’s Current Regulatory And Institutional Position

Progress on regulatory clarity has been serving to actual institutional infrastructure round XRP. Multiple Spot XRP ETFs have gained approval and launched in 2025 and early numbers are positive, with over $1.14 billion value of inflows. Bloomberg estimates counsel these funds may draw $5 billion to $7 billion in institutional capital by 2026. 

This creates new avenues for asset managers, pension funds, and different institutional allocators to carry XRP inside conventional funding automobiles. All these can’t be doable with out the clear framework for blockchain, secure cash, and new fee techniques proposed by Bessent.

Featured picture from Unsplash, chart from TradingView

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