Ripple's XRP Could Reach $1,000 if Institutions Use It as Collateral

Ripple has been making significant strides in institutional finance, spending $1.25 billion on prime broker Hidden Road and launching the RLUSD stablecoin.

The company's efforts have led some to believe that XRP could reach as high as $1,000 if institutions start using it like gold and Treasuries.

An analyst known as xrpl_Adam argues that payment volume won't drive XRP's price to $1,000, but rather the requirement for institutions to hold XRP as collateral.

Xrpl_Adam points out that SWIFT moves about $5 trillion a day, but since XRP is only used for seconds in each payment, it can be reused multiple times, reducing the amount needed to carry daily payments to around $50 billion.

The analyst also notes that at full supply, XRP's market value would need to reach $100 trillion or $10 trillion for a price of $1,000 or $100 respectively.