Preface

In 2025, the cryptocurrency market continued to evolve, and XRP, as one of the top ten digital assets by market capitalization, remained a key focus for investors. Price volatility, regulatory developments, and the legal dispute between Ripple and the SEC significantly influenced the market, keeping XRP in the headlines throughout the year.

XRP Price Volatility

In 2025, XRP’s price experienced multiple sharp fluctuations, driven by broader market trends, U.S. regulatory stances, global economic conditions, and Ripple-related news. Investor expectations further amplified these price movements.

On March 2, 2025, former U.S. President Donald Trump announced plans to include XRP as part of the U.S. national strategic reserve, alongside BTC, ETH, SOL, and ADA. Trump emphasized XRP’s role as a complementary component to Bitcoin and Ethereum in the reserve assets. Following the announcement, XRP surged by 33% in a single day. However, the subsequent crypto summit failed to release substantive policy documents, leading to market disappointment and increased volatility. As part of the U.S. strategic reserve, XRP also faced risks related to unlocking and selling pressure, which could impact SEC decisions.

XRP ETF Applications and Regulatory Developments

As demand for compliant cryptocurrency products grew, financial institutions showed strong interest in XRP-related exchange-traded funds (ETFs). Multiple investment firms submitted applications to the SEC to launch spot XRP ETFs, aiming to meet investor demand.

The appeal of XRP ETFs lies in their ability to reduce investment risks, enhance market accessibility, and improve regulatory compliance. By allowing investors to participate in XRP price movements through traditional stock markets without managing digital wallets, XRP ETFs lower entry barriers. Their introduction is expected to attract institutional investors, such as hedge funds, pension funds, and banks, thereby boosting XRP’s market liquidity, stabilizing prices, and reducing volatility. The ongoing legal dispute between Ripple and the SEC continues to influence XRP’s trajectory. A favorable ruling for Ripple could accelerate the approval of XRP ETFs.

Notably, Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), recently approved the country’s first spot XRP ETF, the Hashdex Nasdaq XRP Index Fund, making it the world’s first spot XRP ETF. Currently in pre-operational stages, Hashdex, the fund’s management company, has announced plans to release further details.

(Source: Trade Brains)

On March 12, 2025, traditional financial giant Franklin Templeton joined the race for a spot XRP ETF. According to Blockworks, the prospectus has been officially submitted to the SEC.

Ripple vs. SEC Legal Dispute

The lawsuit between Ripple and the SEC, ongoing since 2020, remained unresolved in 2025. Ripple continued to defend its position, arguing that XRP is not a security, and sought legal clarity to protect its ecosystem and investors.

Ripple CEO Brad Garlinghouse expressed optimism about collaborating with the new SEC leadership, leading to market speculation about a potential settlement or dismissal of the case. Legal analyst Jeremy Hogan predicted the case could conclude as early as April or May 2025, though procedural requirements might delay the timeline. However, the overall sentiment suggested the case could be pivotal for XRP’s future. Before the new SEC team took office, the current administration was expected to submit opening statements by January 15, attempting to influence the case’s direction. Nonetheless, widespread belief held that the new leadership would create a more favorable environment for Ripple.

Ripple’s Launch of Stablecoin RLUSD

In February 2025, Ripple announced the launch of its new stablecoin, RLUSD, issued on both the XRP Ledger and Ethereum blockchain. Combining the strengths of these platforms, RLUSD offers efficient, low-cost transactions while ensuring transparency and security.

RLUSD is a fully backed stablecoin, collateralized by cash and cash-equivalent reserves, maintaining a 1:1 peg to the U.S. dollar. It aims to address cryptocurrency market volatility and is designed for use in cross-border payments, remittances, payment services, and centralized exchange trading pairs. Key features of RLUSD include deep liquidity, programmable finance, instant settlement, and multi-chain issuance, making it highly adaptable and competitive in the DeFi ecosystem. The launch of RLUSD not only expands Ripple’s influence in digital payments but also represents a strategic move to deepen integration with traditional financial markets.

Conclusion

In 2025, XRP and its ecosystem underwent significant developments and challenges. Sharp price fluctuations, the prolonged Ripple-SEC legal battle, and progress in XRP ETF applications profoundly impacted the market. Despite regulatory uncertainties, XRP’s inclusion in strategic reserves and the potential launch of ETFs underscored its growing importance in traditional finance. With the introduction of RLUSD, Ripple further solidified its position in digital payments and took a major step toward integrating with traditional financial markets. Overall, XRP maintained its status as a leading cryptocurrency while achieving milestones in compliance, financial innovation, and real-world applications, laying a strong foundation for future growth.