Banks Could Start Holding XRP Due To This Simple Change

Banks have mostly stayed on the sidelines when it comes to holding XRP directly, even as interest in digital assets continues to increase. That hesitation has not been due to a lack of utility or demand but to strict regulatory capital rules that made holding XRP economically impractical for regulated institutions. However, a small adjustment in how XRP is treated under global banking rules could remove that barrier and change how banks interact with the cryptocurrency. Why Banks Can’t Hold XRP The main obstacle preventing banks from holding XRP has been its treatment under the global banking framework known as Basel III. Basel III is an international regulatory framework developed after the 2008 financial crisis that introduces higher quality and quantity of capital requirements in the international banking sector.  Right now, XRP currently falls into the Type 2 crypto exposure under Basel III, which is set up with rules for assets that pose higher risks. Under these rules, most crypt