How Much Could XRP Price Be Worth If BIS Recognizes XRP As A Tier 1 Asset?

A fresh discussion around XRP price is taking shape after a post from TheCryptoBasic highlighted a bold scenario tied to global banking rules. The idea centers on whether XRP could ever be treated like the safest assets banks hold and what that might mean for Ripple price over time. Jake Claver, CEO of Digital Ascension Group, sparked this line of thinking by suggesting XRP is moving closer to becoming a global bridge currency, with a distant possibility of recognition by the Bank for International Settlements.

Jake Claver’s comments, shared by TheCryptoBasic, arrived during ongoing debates about whether any crypto asset could reach the same regulatory standing as top bank capital. Tier 1 assets sit at the very top of the Basel framework used by BIS. Banks rely on them during market stress because they absorb losses and support balance sheet stability.

Under current rules, Tier 1 capital is split into two parts. Common Equity Tier 1 includes items like common shares, retained earnings, and disclosed reserves, with banks required to hold at least 4.5 percent of risk weighted assets in this category. Additional Tier 1 includes instruments such as convertible bonds that can absorb losses if a bank faces distress. Assets that qualify as Tier 1 typically include cash held at central banks, highly rated government debt, and physical gold stored or allocated by banks.

Why XRP Does Not Fit Today’s BIS Framework

Current BIS rules leave little room for crypto assets in the Tier 1 category. Instead, the framework places cryptocurrencies into two separate groups. Group 1 includes tokenized real world assets and certain stablecoins that meet strict backing and redemption standards. Algorithmic stablecoins are excluded even from this group.

Group 2 covers unbacked cryptocurrencies like XRP, Bitcoin, and Ethereum. Assets in this category face the toughest capital treatment. Banks can only hold a small percentage of them relative to their Tier 1 capital, often capped around 1 or 2 percent. This structure reflects how regulators view crypto risk compared to traditional safe haven assets.

Despite these limits, XRP supporters continue to explore what could happen if regulators changed course. Jake Claver’s remarks added fuel to that discussion, prompting TheCryptoBasic to look at potential outcomes. An assessment referenced Google Gemini AI to model a scenario where XRP moves from Group 2 treatment into a Tier 1 classification.

According to that analysis, such a shift would radically alter how banks interact with XRP. Institutions could treat it similarly to cash, gold, or central bank reserves, without facing heavy capital penalties. Under that hypothetical framework, Gemini estimated XRP price could land between $15 and $22 if such recognition happened by 2026. Those figures assume a complete regulatory rethink rather than incremental adjustments.

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The Regulatory Reality Facing Ripple And XRP

Regulatory reality remains far from that scenario. The Basel framework reserves Tier 1 status for assets backed by governments, retained profits, and physical gold. Crypto assets operate under a separate rulebook designed for higher risk instruments. No existing pathway allows unbacked cryptocurrencies like XRP to qualify as Tier 1 under current standards.

A future change would require global regulators to rewrite core rules or formally recognize sustained real world usage and long term stability. Ripple continues to position XRP for cross border payments and liquidity bridging, yet regulatory acceptance at the BIS level would represent a structural shift rather than a routine update.

Curiosity around XRP price and Ripple price projections will likely continue as these discussions evolve. The idea of Tier 1 recognition sits firmly in the realm of long term speculation, offering a glimpse into how different the landscape could look if banking rules ever change.