XRP token price has plunged further, risking a 20 percent drop, even as Ripple Labs secured a key banking license approval from regulators on December 12, 2025. This comes amid strong inflows into XRP exchange traded funds, highlighting a puzzling market trend where positive news fails to boost the cryptocurrency’s value.
Ripple Gains Conditional Banking Charter
Ripple Labs received conditional approval from the Office of the Comptroller of the Currency to launch its own national trust bank. This move allows the company to expand into custody services and other banking functions.
Experts see this as a big step for Ripple. It could help the firm diversify beyond its core payment tech. For instance, Ripple might now handle assets for recent buys like GTreasury and Hidden Road without relying on outside banks.
The approval letter stressed that final okay depends on meeting pre opening rules. Ripple plans to shift its Ripple USD stablecoin holdings to this new bank, potentially cutting costs over time.
This development follows years of legal battles with the Securities and Exchange Commission. Ripple’s win in court earlier this year cleared some hurdles, paving the way for such expansions.
XRP Price Slumps Amid Broader Crypto Crash
XRP traded at around 1.98 dollars on December 13, 2025, down from a high of 3.66 dollars in July. This marks a 45 percent fall year to date, with analysts warning of more downside.
Technical charts show XRP in a bear market pattern. It broke below key support levels, suggesting a possible slide to 1.60 dollars if selling pressure continues.
The drop ignores good news like the banking license. Market watchers point to overall crypto weakness, with Bitcoin and Ethereum also facing dips due to economic worries.
Whales, or large holders, scooped up over 560 million dollars in XRP recently. Yet, this buying spree has not stopped the price decline, raising questions about retail investor confidence.
ETF Inflows Surge But Fail to Lift Price
XRP focused exchange traded funds have seen over 1 billion dollars in inflows since launch. Funds like those from 21Shares and REX Osprey report steady demand with no outflow days.
The Securities and Exchange Commission approved more XRP ETFs this week, including one from 21Shares. This should increase access for everyday investors.
Despite this, XRP price keeps falling. Analysts say broader market fears, like potential rate hikes from the Federal Reserve, overshadow these gains.
Ripple USD stablecoin has grown to over 1.3 billion dollars in assets. The company’s valuation hit 40 billion dollars, yet token holders see no immediate benefits.
Here are key factors affecting XRP ETFs:
- Strong institutional interest drives inflows.
- No recorded outflows signal steady demand.
- Approvals expand market reach to new investors.
- Competition from Bitcoin ETFs draws some funds away.
Why Positive News Isn’t Boosting XRP
Several reasons explain the disconnect between news and price. First, the crypto market faces headwinds from global events, like trade talks and regulatory shifts.
Ripple’s push into banking might worry some holders. Talks in Congress about the Clarity Act raise ideas that Ripple could divest XRP holdings, adding uncertainty.
Logical reasoning points to profit taking. After a strong run earlier in 2025, sellers dominate as buyers wait for clearer signals.
Compare this to past events. In 2024, similar license rumors sparked brief rallies, but sustained growth needed real adoption.
| Factor | Impact on XRP Price | Current Status |
|---|---|---|
| Banking License | Potential long term growth | Conditional approval granted |
| ETF Inflows | Increased demand | Over 1 billion dollars total |
| Market Crash | Short term pressure | Ongoing since July 2025 |
| Whale Activity | Supportive buying | 560 million dollars purchased |
| Regulatory Talks | Uncertainty | Clarity Act discussions active |
What Lies Ahead for XRP Investors
Looking forward, XRP could rebound if regulations clarify. Lawmakers work on bills that might favor crypto banks, boosting Ripple’s role.
Analysts predict a breakout above 2.70 dollars if positive trends hold. Some forecast XRP outperforming Bitcoin post ETF, with targets up to 5 dollars.
However, risks remain. A 20 percent drop to 1.60 dollars is possible without fresh catalysts.
Investors should watch OCC’s final approval and ETF flow data. Broader adoption in payments could drive real value.
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