The First Quarter of 2025 Marked a Turning Point for Ripple and Its XRP Token

The first quarter of 2025 marked a turning point for Ripple and its XRP token, driven by regulatory and strategic moves that reinforced its position in the global financial market.

The first quarter of 2025 brought a decisive turn in the unfolding tale of Ripple and its XRP token.

As the dust settles on a long-running legal battle and new institutional products emerge, the company is charting a course for deeper integration within the global financial system.

The U.S. Securities and Exchange Commission (SEC) moved to wind down its case against Ripple, announcing in March the planned withdrawal of its appeal against a lower court ruling.

The case, which began in December 2020, had stalled the token's price rally and weighed heavily on the company's operations.

The proposed settlement will see Ripple pay a reduced fine of $50 million, down from an initial $125 million.

Moreover, the pending injunction on the sale of XRP is likely to be lifted, subject to final approval from the commission. This development is crucial for the company to continue its operations smoothly and launch new products.

The resolution of the SEC case also coincides with a broader shift in U.S. regulatory policy.

The new administration has adopted a more crypto-friendly stance, aiming to regulate the industry and foster innovation in the digital asset space.

At the same time, Ripple is making strategic moves to expand its offerings and cater to institutional demand.

In April, the company announced the acquisition of multi-asset broker Hidden Road for $1.25 billion.

This move will allow Ripple to integrate its blockchain infrastructure with traditional financial services.

The firm plans to use its stablecoin RLUSD as collateral for cross-margin operations between digital and traditional assets, facilitating seamless trading and lending activities.

On the other hand, Hidden Road plans to apply XRP Ledger technology to streamline post-trade processes in FX, swaps, and repo markets.

This integration will enhance efficiency and reduce operational costs in traditional financial institutions.

The token itself is seeing strong institutional interest, which was evident in the flurry of filings for spot XRP ETFs.

After Grayscale and WisdomTree joined the race to launch the first U.S. XRP ETF, Franklin Templeton submitted an S-1 application to the SEC in March.

The asset management giant aims to list its product on the Nasdaq exchange, offering institutions a new avenue to invest in the token through an SEC-approved vehicle.

Moreover, CME announced the launch of XRP futures contracts, set to debut on May 19.

These futures will be listed on CME Clearnet and offer institutional traders the opportunity to hedge price risk or engage in leveraged trading on the token.

The token’s performance during the quarter was outstanding, outperforming other major cryptocurrencies.

XRP achieved an average daily trading volume of $3.2 billion during the period, with peaks exceeding $16 billion during periods of heightened activity.

At the time of writing, the token is changing hands at $2.10 per unit following a daily drop of 1.3%.

On-chain activity on the XRP Ledger saw a 37% drop in transactions and a 40% decline in new wallet creations compared to the previous quarter.

However, volume on decentralized exchanges (DEX) fell by just 17%, showcasing stronger resilience within the DeFi space.

The RLUSD stablecoin crossed the $90 million mark in terms of market capitalization and recorded more than $300 million in cumulative volume on DEX platforms.