XRP has recently emerged from a period of prolonged uncertainty with renewed momentum, positioning itself as one of the most compelling long-term digital assets in the cryptocurrency market. Despite past volatility and regulatory scrutiny, several key developments have shifted the landscape in XRP’s favor. If you're evaluating which crypto assets to hold over the next three years, XRP deserves serious consideration.
Backed by fundamental advancements in regulation, institutional integration, and potential government retention policies, XRP is no longer just a speculative play—it's evolving into a functional component of the future financial ecosystem. Let’s explore the three most impactful reasons why now may be an ideal time to buy and hold XRP for the long term.
The Regulatory Cloud Has Largely Lifted
For over three years, the biggest overhang on XRP’s price and adoption was the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs. The central question—whether XRP qualifies as an unregistered security—created uncertainty that deterred exchanges, investors, and financial institutions from engaging with the asset.
That era appears to be ending. In a pivotal development, the SEC and Ripple jointly filed a motion on May 8 to settle the case for $50 million—down significantly from a previously agreed $125 million. If approved by the court, this settlement would mark a de facto victory for Ripple and, by extension, XRP holders.
👉 Discover how regulatory clarity is unlocking new value in digital assets today.
More importantly, this resolution paves the way for Ripple to operate without the constant threat of enforcement action. It reaffirms that XRP can be issued and used freely across global markets, reinforcing its utility in cross-border payments and decentralized finance applications. With the most significant legal risk now behind it, XRP transitions from a controversial token to a legally validated digital asset—making it far more attractive to institutional capital.
This shift isn’t just symbolic. Major exchanges that had delisted XRP due to regulatory fears are already reconsidering their positions. As compliance concerns fade, broader market access returns, increasing liquidity and demand.
Strategic Acquisition Strengthens Institutional Ties
On April 8, Ripple announced the acquisition of Hidden Road, a prime brokerage firm, in a deal valued at approximately $1.2 billion. This move is not merely expansionary—it's transformative.
Prime brokers serve hedge funds, asset managers, and other institutional players by providing services like securities lending, trade execution, and capital financing. By integrating Hidden Road into its ecosystem, Ripple gains direct access to traditional finance (TradFi) infrastructure—and brings XRP directly into the fold.
Here’s how it works: Stablecoins issued on the XRP Ledger (XRPL) can now be used as collateral by institutional traders on Hidden Road’s platform. This means that instead of relying solely on fiat or traditional assets like Treasury bonds for margin trading, hedge funds can pledge XRPL-based stablecoins to borrow capital—both in crypto markets and legacy financial systems.
This dual-sector usability turns XRPL into a financial bridge between decentralized and centralized finance. It enhances capital efficiency and opens up new revenue streams for Ripple while simultaneously increasing on-chain activity.
Furthermore, all post-trade operations previously handled off-chain will now migrate onto the XRP Ledger. This migration will generate consistent transaction volume, strengthen network effects, and increase demand for XRP as a settlement asset. Over time, this could lead to measurable deflationary pressure on supply due to regular transaction burning—a built-in economic incentive for long-term holders.
Potential Inclusion in U.S. Digital Asset Stockpile
A lesser-known but highly significant development is the proposed Digital Asset Stockpile (DAS) initiative under a recent U.S. executive order. While still in formation, the DAS aims to allow federal agencies to retain seized digital assets—including cryptocurrencies like XRP—rather than immediately auctioning them off.
If implemented, this policy would effectively remove substantial amounts of XRP from circulating supply. Unlike previous practices where confiscated coins were sold quickly (often depressing prices), these assets could remain locked in government-held wallets indefinitely—or until future policy changes.
With reduced float and steady organic demand, basic supply-and-demand dynamics suggest upward price pressure over time. Even a modest reduction in available supply can have an outsized impact when combined with growing institutional usage.
But beyond economics, there’s a powerful psychological signal here: the U.S. government treating XRP as a valuable asset worth holding adds legitimacy. When paired with Ripple’s legal wins and financial integrations, this sends a strong message to global investors that XRP is not just surviving—but thriving—within regulated frameworks.
Frequently Asked Questions (FAQ)
Q: Is XRP still considered a security after the SEC lawsuit?
A: No final ruling has been issued, but recent court decisions and the proposed settlement strongly indicate that XRP is not being treated as a security in practice. The SEC’s own actions—accepting settlement terms favorable to Ripple—signal a retreat from that classification.
Q: How does Ripple’s acquisition of Hidden Road benefit XRP holders?
A: It increases real-world usage of the XRP Ledger by enabling stablecoins on XRPL to be used as collateral in institutional trading. This drives transaction volume, strengthens network utility, and attracts more capital onto the chain.
Q: What happens if the Digital Asset Stockpile isn’t implemented?
A: While not guaranteed, even the proposal boosts market sentiment. However, given bipartisan interest in digital asset policy reform, some form of retention policy is likely to emerge in the coming years.
Q: Can XRP scale effectively for global payments?
A: Yes. The XRP Ledger processes transactions in 3–5 seconds with near-zero fees and high throughput—making it one of the most efficient blockchains for cross-border settlements.
Q: Does Ripple control too much of the XRP supply?
A: Ripple holds a portion of XRP in escrow, releasing only what’s needed for operations monthly. Over 60% of total supply is already in public circulation, and transparency reports are published regularly.
👉 See how next-generation blockchain assets are reshaping global finance—before the surge begins.
The convergence of legal resolution, strategic expansion, and potential governmental recognition positions XRP uniquely among digital assets. Unlike many cryptocurrencies built purely for speculation, XRP serves a clear purpose: enabling fast, low-cost international payments used by banks and payment providers worldwide.
Holding XRP for at least three years allows investors to ride multiple catalysts—from increased adoption by financial institutions to possible supply tightening through government retention policies. As blockchain technology becomes further embedded in mainstream finance, assets with proven utility and regulatory clarity will lead the next bull cycle.
Now is the time to assess XRP not based on past controversies, but on its current trajectory—one that points toward sustained growth and deeper integration into global financial infrastructure.
👉 Start building your long-term crypto portfolio with high-potential assets like XRP today.