The global financial landscape is witnessing a growing institutional embrace of digital assets, and one of the most surprising yet compelling voices to enter the conversation is Standard Chartered. The UK-based banking giant has recently released a bold forecast for XRP, predicting a potential 500% surge within the next three years, with the cryptocurrency possibly surpassing Ethereum in market capitalization by 2028.
According to Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, XRP is poised for a significant revaluation driven by a powerful convergence of regulatory clarity, institutional adoption, and expanding real-world applications. This optimism marks a pivotal shift in how traditional finance views blockchain-based assets, especially those rooted in enterprise-grade utility.
The Three Pillars Driving XRP’s Growth
Kendrick’s bullish outlook rests on three core catalysts that are expected to reshape XRP’s trajectory over the coming years:
- Regulatory Clarity
- Institutional Adoption
- Application Expansion
These factors are not isolated—they feed into each other, creating a compounding effect that could accelerate XRP’s rise in both value and relevance.
Regulatory Tailwinds Fuel Confidence
One of the most significant turning points for XRP was the U.S. Securities and Exchange Commission (SEC) dropping its appeal in the long-running lawsuit against Ripple Labs. This legal resolution, which spanned over four years, removed a major overhang that had dampened investor sentiment and hindered institutional participation.
With this chapter now closed, the path is clearer for XRP to be recognized more broadly as a functional digital asset rather than a security under U.S. law. This shift in regulatory posture—especially amid broader pro-crypto sentiment in current U.S. policy discussions—has laid the groundwork for new financial products tied to XRP.
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XRP ETF Approval on the Horizon?
Kendrick projects that an XRP spot ETF could receive approval as early as the third quarter of 2025. If realized, such a product would open the floodgates for mainstream investment, offering regulated exposure to XRP through traditional brokerage platforms.
He estimates that an approved ETF could attract $4 billion to $8 billion in net inflows during its first year, reflecting strong underlying demand from both retail and institutional investors seeking diversified crypto exposure.
This development would mirror the impact seen with Bitcoin ETFs in 2024, which brought unprecedented liquidity and credibility to the market. For XRP, an ETF could serve as a critical milestone in its journey toward broader financial integration.
From Payment Chain to Tokenization Powerhouse
While XRP has long been associated with fast and low-cost cross-border payments, its role is rapidly evolving. Ripple—the company behind the XRP Ledger (XRPL)—is expanding aggressively into tokenized assets, including U.S. Treasury-backed funds and its own dollar-pegged stablecoin, RLUSD.
These initiatives position XRPL not just as a payment rail but as a full-fledged tokenization platform—a digital infrastructure capable of representing real-world assets on-chain. Given the explosive growth of stablecoins—projected to increase transaction volume tenfold over the next four years—this strategic pivot could place XRP at the heart of the next phase of financial innovation.
"We expect the XRPL to evolve from a 'payment chain' into a 'tokenization chain,' serving as a backbone for institutional-grade asset issuance," said Kendrick.
This transformation aligns perfectly with rising global interest in tokenized securities, central bank digital currencies (CBDCs), and programmable money—all areas where XRP’s scalability and efficiency offer distinct advantages.
Market Outlook: Price Targets and Timeline
Standard Chartered has outlined a clear price trajectory for XRP based on its adoption and regulatory assumptions:
- End of 2025: $5.50
- 2026: $8.00
- 2028: $12.50
- 2029 and beyond: Stable around $12.50
A rise to $12.50 would represent an increase of more than **500% from current levels**, potentially pushing XRP’s market cap above **$700 billion**—a figure that could indeed surpass Ethereum’s valuation if Ethereum’s growth remains constrained by competition and regulatory scrutiny.
Kendrick believes that by the end of 2028, XRP will become the second-largest cryptocurrency by market cap, trailing only Bitcoin—excluding stablecoins like USDT and USDC.
Addressing Challenges: Developer Ecosystem and Value Capture
Despite the optimistic forecast, Kendrick acknowledges that XRP still faces hurdles. The developer ecosystem around XRPL lags behind Ethereum and other smart contract platforms, limiting decentralized application (dApp) innovation. Additionally, while low transaction fees enhance usability, they also raise questions about long-term value accrual for holders.
However, he argues that these challenges are temporary. As regulatory clarity improves and institutional use cases grow, more developers and enterprises are likely to build on XRPL. Increased activity will naturally lead to greater demand for XRP—not only as a medium of exchange but also as a foundational asset within tokenized finance.
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A Contrarian View on Ethereum
Notably, Kendrick’s enthusiasm for XRP contrasts sharply with his revised outlook on Ethereum. Once projecting ETH to reach $10,000 by the end of 2025, he has since slashed that target to just **$4,000**, citing increased competition from faster, lower-cost blockchains and ongoing uncertainty around scalability and regulation.
This downgraded forecast underscores a broader trend: institutional investors are increasingly evaluating cryptocurrencies not just by brand recognition or past performance, but by real-world utility, regulatory resilience, and scalability—areas where XRP appears to hold growing appeal.
Frequently Asked Questions (FAQ)
Q: What is driving Standard Chartered’s bullish prediction for XRP?
A: The forecast is based on three main factors: regulatory resolution with the SEC, rising institutional adoption, and Ripple’s expansion into tokenized real-world assets like stablecoins and tokenized Treasuries.
Q: Is an XRP ETF likely to be approved?
A: Analysts at Standard Chartered believe approval could come in Q3 2025, following the precedent set by Bitcoin ETFs and the recent legal clarity around XRP’s status.
Q: Can XRP really surpass Ethereum in market cap?
A: While ambitious, it’s possible under strong adoption scenarios. If XRP reaches $12.50 by 2028 and Ethereum stagnates due to competition or regulation, such a crossover becomes feasible.
Q: What are the risks to this price prediction?
A: Key risks include delays in ETF approval, slower-than-expected institutional adoption, limited dApp development on XRPL, or renewed regulatory challenges in major markets.
Q: How does XRP differ from other major cryptocurrencies?
A: Unlike Bitcoin (store of value) or Ethereum (smart contracts), XRP is designed primarily for fast, low-cost cross-border payments and is increasingly used in tokenizing real-world financial assets.
Q: What role does Ripple play in XRP’s ecosystem?
A: Ripple develops and supports the XRP Ledger (XRPL), drives enterprise partnerships, and leads innovation in payment solutions and asset tokenization—all of which increase demand for XRP.
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Final Thoughts
Standard Chartered’s forecast signals a growing recognition among traditional financial institutions that digital assets are no longer speculative outliers but integral components of the future financial system. For XRP, this moment could mark the beginning of a transformative chapter—one defined by regulatory acceptance, institutional trust, and meaningful utility beyond speculation.
As blockchain technology continues to bridge traditional finance with decentralized innovation, assets like XRP may well emerge as key infrastructure players in a tokenized global economy.
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