XRP Price if the BIS Recognizes XRP as a Tier-1 Asset in the Future

The XRP price could see a substantial increase if the Bank for International Settlements (BIS) categorizes it as a tier-1 asset in the future.

The BIS Tier-1 Classification

Interestingly, his comments came at a time when crypto investors continue to wonder whether a crypto asset can gain the same status as the safest bank capital.

For context, tier-1 assets are the highest-rated assets under the BIS Basel rulebook. Notably, banks rely on them to remain stable during market stress and to prove they can absorb losses. To regulators, they represent the strongest protection available on a bank’s balance sheet.

Tier-1 capital falls under two parts. The first part, Common Equity Tier-1, or CET1, includes common shares, retained earnings, and disclosed reserves. Banks must hold a minimum CET1 level of 4.5% of their risk-weighted assets.

Meanwhile, additional Tier-1 includes financial instruments like convertible bonds that switch to equity or can be reduced in value if a bank becomes distressed.

Can Crypto Assets Fall Under Tier-1?

Examples of Tier-1 assets include cash reserves held at central banks and government debt from highly rated countries. These include exposures to sovereign debt rated from AAA to AA- or bonds issued by a country in its own currency. Physical gold that a bank stores in its vault or holds in allocated form also falls in this category.

It bears mentioning that crypto assets do not fit the category of Tier-1 assets, as they have a different classification. Specifically, the BIS has introduced formal rules to guide how banks handle crypto assets. Instead of treating them as Tier-1, the BIS placed all cryptocurrencies into two categories

Group 1 covers tokenized versions of real assets and certain stablecoins that meet strict backing and redemption rules. Banks may give them similar treatment to the assets they represent, although algorithmic stablecoins do not qualify.

Meanwhile, group 2 contains all unbacked cryptocurrencies such as XRP, Bitcoin, and Ethereum, which face the toughest restrictions. Banks can only hold a small amount of these tokens relative to their Tier-1 capital, usually not more than 1 or 2%

XRP Price if It Becomes a Tier-1 Crypto

Amid these limits, many XRP proponents continue to imagine a day when XRP earns a higher classification. Claver’s latest remarks bolstered this optimism and led to new discussion about what might happen if regulators change their approach.

As a result, we turned to Google Gemini AI for an assessment. Gemini noted that a switch from Group 2 treatment to Tier-1 status would completely change how banks interact with XRP

Under such a change, banks could treat the asset like cash, gold, or central bank reserves and no longer face strict capital penalties. Gemini estimated that if such a move occurred by 2026, XRP could trade somewhere between $15 and $22.

XRP Price Prediction | Google GeminiHowever, it is important to note that current BIS rules provide no path for XRP or any other unbacked crypto to qualify as a Tier-1 asset. The Basel framework reserves that category for common equity, retained profits, government-backed holdings, and physical gold. Crypto operates under a separate rulebook designed for higher-risk instruments

For XRP to receive a better category in the future, global regulators would need to rewrite their framework or recognize stronger real-world usage and proven stability. Until that happens, the Tier-1 status goal remains unreachable.